>> THAT IS MORE LIKE IT, GOOD
MORNING, EVERYBODY. YOU JOINED QUALCOMM AS AN
ENGINEER IN 1995. IT WAS YOUR BIRTHDAY YESTERDAY.
BELATEDLY, HAPPY BIRTHDAY. CRISTIANO: THANK YOU VERY MUCH. >> WE KNOW QUALCOMM AS THE
LARGEST MAKER OF SMALL CLAIM PROCESSES, THE BRAINS INSIDE OF
THE HEADSETS THAT ARE POINTING AT YOU TAKING PHOTOS. THE QUESTION, IS QUALCOMM AN AI
COMPANY? CRISTIANO: THIS IS A GREAT QUESTION TO ASK.
IT IS INCREDIBLE TO SEE ALL OF THE DEVELOPMENT THAT YOU SEE
RIGHT NOW ON AI. HERE IS HOW I WILL ANSWER THAT
QUESTION. IT IS VERY SIMPLE. IF YOU THINK ABOUT THE AI, YOU
THINK ABOUT SEMICONDUCTORS, THEY DO A LOT OF COMPUTATION
AND WHAT YOU CAN DO WITH THOSE LARGE LANGUAGE MODELS, THOSE
LARGE MODELS FOR IMAGES AND VIDEOS.
IF YOU THINK ABOUT THE HISTORY OF COMPUTING, COMPUTING STARTS IN THE CLOUD AND IT GETS SCALED.
THAT IS WHAT HAPPENS WITH CPU. THAT IS WHAT HAPPENS WITH OTHER
FORMS OF COMPUTING AND THE SMARTPHONE IS A GREAT EXAMPLE
OF THAT. IF YOU LOOK, THE LARGEST
COMPUTING PLATFORM EVER DEVELOPED IS THE SMARTPHONE
RIGHT NOW. WHAT IS GOOD ABOUT THE
SMARTPHONE, IT IS A DEVICE THAT IS WITH YOU ALL THE TIME.
IF AI BECOMES PERVASIVE, WHICH WE BELIEVE IT WILL BECOME
PERVASIVE, ESPECIALLY WHEN YOU LOOK AT HOW THOSE LARGE MODELS,
THEY ARE VERY NATURAL, HOW YOU CAN CONVERSE WITH THEM, THEY
HAVE CONTEXTUAL INFORMATION AND ALL OF THOSE THINGS, THAT WILL
HAPPEN AT THE EDGE. THAT IS HOW YOU SHOULD THINK
ABOUT QUALCOMM. IF AI IS GOING TO GET SCALE,
YOU WILL SEE IT RUNNING ON QUALCOMM DEVICES WHETHER IT IS
IN YOUR CAR, ON YOUR PHONE AND OTHER MACHINES.
IT IS A GREAT OPPORTUNITY. >> IF THE FUTURE IS TO
DEMOCRATIZE ACCESS AND QUALCOMM IS GOING TO MAKE THAT HAPPEN,
WHY ARE YOU NOT GETTING THE LOVE? CRISTIANO:
IT IS GREAT FOR THE SEMICONDUCTOR INDUSTRY FOR
ANYBODY WHO HAS BEEN ON THE FOREFRONT OF COMPUTING,
QUALCOMM PROBABLY USED TO BE WELL-KNOWN AS A COMMUNICATION
COMPANY. IF YOU LOOK AT WHAT WE DO RIGHT
NOW, IT IS MORE OF A PROCESSOR COMPANY END COMMUNICATION.
AS THOSE MODELS START TO BECOME VERY POPULAR, THEY WILL BE
RUNNING AT THE EDGE AND I EXPECT THAT AI BECOMES AN
OPTION ON QUALCOMM RIGHT NOW. I WILL GIVE YOU AN EXAMPLE. I SAW SOMETHING THAT ADAM SET
IN THE PRIOR CONVERSATION, HE SAID IN 1997 IF YOU WERE TO
GUESS WHO WERE THE WINTER SPRING AND LOSERS OF THE
INTERNET, IT WOULD BE A WILD GUESS -- IF YOU HAD TO GUESS WHO WERE THE WINNERS AND LOSERS
OF THE INTERNET, IT WOULD BE A WILD GUESS.
JUST WITHIN THE PAST SIX MONTHS, IT IS A REVOLUTION OF
COMPANIES WITH USE CASES. THOSE USE CASES WILL HAPPEN ON
DEVICES AND THAT WILL BE A GREAT OPPORTUNITY. ED:
HOLD THAT THOUGHT. I WILL SHOW YOU SOMETHING, TO
THE AUDIENCE AND THOSE WITH US VIRTUALLY. LET'S BRING UP THE VIDEO AND
WHEN IT COMES UP AND PLAYS, EXPLAINED TO US A LITTLE BIT
WHAT IT IS THAT WE ARE SEEING BECAUSE HERE AT THE BLOOMBERG
TECHNOLOGY SUMMIT, I'M GOING TO MAIL THE TECHNOLOGY ANY SECOND
-- I'M GOING TO NAIL THE TECHNOLOGY ANY SECOND.
CRISTIANO: YOU WILL HAVE AN INPUT IMAGE ON
YOUR PHONE. PEOPLE" WHAT YOU WANT THE IMAGE TO BE.
WHETHER YOU WANT IT TO BE A MASTERPIECE.
IT JUST RUNS AND GIVES YOU THIS VERY UNIQUE IMAGE, IMAGE TO
IMAGE THAT HAS NEVER BEEN CREATED BEFORE RUNNING ON YOUR
PHONE. IT IS A GOOD TIME TO TALK A
LITTLE BIT ABOUT HOW WE THINK ABOUT AI AT THE EDGE, OUTSIDE
OF THE DATA CENTER. LIKE WE HAVE SEEN EVERYWHERE,
THERE WILL BE THIS HUGE OPPORTUNITY FOR THE CLOUD BUT
IT WILL BE THIS HUGE OPPORTUNITY FOR DEVICES.
WHAT YOU DO ON THE DEVICE IS VERY DIFFERENT.
THERE ARE A NUMBER OF REASONS WHY THIS IS GOING TO BE VERY
POPULAR ON THE DEVICE. FIRST, THE DEVICE HAS
CONTEXTUAL INFORMATION ABOUT YOU AND IT HAS REAL-TIME
INFORMATION LIKE A PICTURE YOU JUST TOOK AND YOU WANT IT RIGHT
NOW AT THAT MOMENT TO CHANGE THAT PICTURE AND SHARE IT WITH
SOMEBODY ELSE WITH YOUR MESSAGING PLATFORM. ED: THAT DEVICE WAS RUN IN AIRPLANE
MODE WITHOUT ANY EXTERNAL CONNECTION RUNNING.
IT RAN THE MODEL LOCALLY ON THE DEVICE. CRISTIANO: ABSOLUTELY.
YOU HAVE REAL-TIME CONTEXTUAL INFORMATION.
THERE IS ANOTHER REASON. PROCESSING ON THE PHONE IS
VIRTUALLY FREE. WHEN YOU THINK ABOUT YOU ARE
RUNNING THOSE MODELS IN THE CLOUD AND THINK ABOUT A LARGE
LANGUAGE MODEL FOR EVERY TOKEN LIKE A WORD.
IF YOU DO THAT, YOU WILL SEE THE WORDS COMING UP.
FOR EVERY TOKEN, YOU ARE RUNNING THE ENTIRE MODEL AND
YOU USE A LOT OF CLOUD COMPUTING BUT THE COMPUTING
THAT IS IN THE PALM OF YOUR HAND, IN YOUR CAR, IN YOUR
COMPUTER, THAT PROCESSING POWER IS AVAILABLE AND IS DEDICATED
TO YOU. THAT IS ANOTHER REASON TO RUN
THOSE ON THE DEVICES. THE THIRD REASON IS YOU CAN SEE
THIS AND THERE IS A LOT OF ACADEMIC WORK.
THOSE MODELS WHEN THEY GET VERY WELL-TRAINED TRAINED, THEY
BECOME SMALLER. ONE OF THE THINGS WE HAVE DONE
THAT IS VERY UNIQUE TO QUALCOMM, WE SPENT A DECADE ON
THIS. WE INVESTED IN THIS BEFORE.
IT WAS POPULAR. IT IS THE HISTORY OF MANY OF
THE THINGS THAT QUALCOMM DID. WHAT WE DID IS COULD BECOME UP
WITH THE ABILITY TO DO VERY HIGH PROCESS, HIGH-PERFORMANCE
ACCELERATED COMPUTING ON THE DEVICE, RUNNING LARGE NUMBER OF
PARAMETERS AND YOU CAN DO IT ON THE PHONE WITHOUT CARBON RISING
BATTERY LIFE BECAUSE YOU WOULD NEVER TRADE THAT FOR BATTERY
LIFE. YOU WOULD EXPECT TO DO ALL THIS
AND STILL LAST ALL DAY. HE DEVELOPED A VERY UNIQUE
TECHNOLOGY WHICH IS THE MOST ACCELERATED COMPUTING AND WE
ARE BRINGING THAT TO ALL OF OUR DEVICES.
JUST TO GIVE AN ORDER, THE NEW PROCESS WE ARE GOING TO LAUNCH
THIS YEAR TO SUPPORT 10 BILLION. METER MODELS RUNNING LOCALLY ON
THE DEVICE. WE ARE GOING TO DO IT ON THE
WINDOWS PLATFORM. IT WILL BE OVER 20 BILLION.
WHAT WE ARE GOING TO DO IN CARS WILL BE IN THE ORDER OF 40
MILLION TO 60 MILLION RUNNING ON THE DEVICE.
WHEN YOU THINK ABOUT IT, WHEN YOU SEE ALL OF THOSE MODELS
BEING WELL TRAINED AND BECOMING SMALLER, WE WILL SEE THE
DEVELOPMENT OF HYBRID AI. YOU WOULD DO A QUERY.
YOU WANT IT TO DO THIS. IF THE MODEL IS
WELL-TRAINED, IT WILL RUN ON THE DEVICE. ED:
THE QUESTION WE HAVE IS HOW REAL IS THIS?
THE DEMONSTRATION SHOWED YOU RUNNING A 1.5 BILLION PERIMETER
MODEL -- 1.5 BILLION PARAMETER MODEL. WHEN CAN WE DO THAT?
CRISTIANO: TEXT TO IMAGE, THIS SUMMER, WE
ARE GETTING TO FIVE SECONDS WITH, " CONNECTIVITY. -- FIVE SECONDS WITH NO CLOUD
CONNECTIVITY. ED: THERE ARE LOTS OF ENGINEERS AND
THEY EXPRESSED SKEPTICISM THAT THIS IS GOING TO HAPPEN. THAT ALL OF US WILL BE RUNNING
LARGE LANGUAGE MODELS LOCALLY BECAUSE THEY DOUBT THE PROCESS
OR THEY DOUBT THE WORK THAT YOU CAN DO. WHERE DID YOU DO THE
INNOVATION? CRISTIANO:
THIS IS A GOOD QUESTION AND THAT IS WHY I WAS ABOUT TO TELL
YOU ABOUT HOW WE THINK ABOUT HYBRID AI EXACTLY LIKE YOUR
PHONE WORKS TODAY. YOU HAVE A LOT OF APPLICATIONS
ON YOUR PHONE. YOU HAVE A LOT OF APPS AND THEY
ARE BEING PROCESSED ON THE DEVICE AND IN THE CLOUD.
THEY WORK AS A SINGLE UNIT. HYBRID AI, WHAT IS HAPPENING RIGHT NOW IS WE HAVE A MODEL
RUNNING LOCALLY, WE PROVIDE A QUERY.
THE MODEL WILL DECIDE IF IT RUNS LOCALLY OR GIVE THE CLOUD
A HEAD START IN SENDING TOKENS TO THE CLOUD.
IT WILL BE COMPLETELY TRANSPARENT TO YOU.
ON SOME APPLICATIONS IT IS NOT JUST BECAUSE YOU DON'T WANT TO
USE THE CLOUD. YOU WANT THAT FAST RESPONSE ON
THE DEVICE BECAUSE OF LATENCY OR CONTEXTUAL INFORMATION.
WHEN THE SMARTPHONE HAPPENED, MOST PEOPLE DO NOT REMEMBER
THIS. I AM SURE I AM GOING TO SHOW MY
AGE. I HAVE BEEN AT EVERY TRANSITION
OF TECHNOLOGY AT QUALCOMM. WE WERE THE FIRST TWO, WITH THE
CONCEPT -- WE WERE THE FIRST TO COME UP WITH THE CONCEPT.
THE PALMPILOT. YOU USE YOUR PHONE TO MAKE
CALLS AND TEXTS. GPS WAS JUST FOR E911.
ALL OF A SUDDEN THIS BECAME A COMPUTER AND PEOPLE WERE SAYING
WHAT AM I GOING TO DO WITH IT. REMEMBER WE TALKED ABOUT 4G
BROADBAND THERE WERE ANALYSTS WITH THEIR BLACKBERRIES TELLING
US WHO WANTS THIS, WHAT WILL YOU DO WITH THIS.
I HAVE EVERYTHING I NEED IN MY BLACKBERRY.
IT WAS AN INCREDIBLE DEVICE. ED: WE SHOULD ACKNOWLEDGE THAT
BLACKBERRY IS NOT REALLY A THING ANYMORE. CRISTIANO:
WHAT IT SHOWS IS THE REVOLUTION THAT HAPPENED WITH ALL OF THOSE
APPLICATIONS ON YOUR PHONE. THAT IS HOW YOU SHOULD THINK
ABOUT AI. WE ARE JUST AT THE VERY
BEGINNING. WE ARE JUST SHOWING SOME
EXAMPLES, STABLE DIFFUSION, BUT THERE WILL BE SO MANY DIFFERENT
APPLICATIONS. THINK ABOUT A CAR. I LIKE THIS EXAMPLE BECAUSE AS A KID I USED TO WATCH NIGHT
RIDER. NATURAL LANGUAGE CONVERSATION
IS PERFECT FOR A CAR. ED: HOW IS QUALCOMM RELEVANT TO
THAT DISCUSSION? CRISTIANO: LOOK AT WHAT WE ARE DOING RIGHT
NOW. I DON'T HAVE TO TELL YOU ABOUT
OUR POSITION IN THE MOBILE MARKET ESPECIALLY ON PREMIUM
COMPUTING FOR THE ANDROID SPACE. WE ARE NOW VIRTUALLY WORKING
WITH EVERY BRAND -- VIRTUALLY EVERY BRAND IN AUTOMOTIVE FOR
NEXT-GENERATION ADDITIONAL COMPACT.
WE HAVE BEEN THE PARTNER OF CHOICE OF COMPANIES LIKE META,
MICROSOFT, GOOGLE AND SAMSUNG FOR VIRTUAL REALITY AND WE HAVE
BEEN EXPANDING TO OTHER THINGS. ED: LET'S S HIT PAUSE. GO BACK TO THIS VIDEO. WHY WOULD I WANT A COMPLEX
MODEL ON A SMALL DEVICE WHEN THOSE MODELS WOULD RUN BETTER
IN THE CLOUD. THAT APPLIES TO THE AUTOMATED
EXAMPLE AS WELL. CRISTIANO:
I PROVIDED THE ANSWERS TO THOSE QUESTIONS ON THE PHONE BUT I
WILL TALK ABOUT THE CAR. WHEN YOU ARE INSIDE THE CAR, WE
HAVE A LOT OF AI IN THE CAR TODAY FOR ASSISTED DRIVING AND
AUTONOMY. JUST TO GIVE AN EXAMPLE, IF YOU
LOOK AT GM, ALL RUNNING ON A QUALCOMM AI PROCESSOR.
THE CAR NEEDS TO MAKE DECISIONS THAT ARE VERY CONTEXT RELATED
IN REAL TIME. WHEN YOU THINK ABOUT ASSISTED
DRIVING, THE SENSORS IN THE CAR FOR ASSISTED DRIVING AUTONOMY
WILL SEE AN IMAGE AND NEED TO MAKE A DECISION.
THAT COMPUTATION NEEDS TO HAPPEN LOCALLY.
THE REASON QUALCOMM BECAME SUCCESSFUL AND WE ARE EXPANDING
IS BECAUSE YOU CANNOT PUT A SERVER IN THE TRUNK OF A CAR,
ESPECIALLY AN EV. NOW WITH COMPETING POWER, IN
THE CAR THE LANGUAGE MODEL CAN BE AS BIG AS THE MODEL IN THE
CLOUD AND YOU HAVE NOW THE REAL CONTEXT INFORMATION.
LET'S SAY YOU ARE TALKING TO THE MODEL LIKE YOU WOULD A
NIGHT RIDER. YOU GIVE A VERY COMPLEX
INSTRUCTION FOR THE CAR. I WANT TO GO HOME, ON THE WAY
HOME I WANT TO STOP HERE, I WANT TO ORDER THIS, I WANT TO
PICK IT UP. THOSE THINGS ARE GOING TO BE
VERY RELATED TO THE INFORMATION YOU WILL HAVE.
IT DOES NOT MEAN THAT YOU ARE SEPARATING THE AI FROM THE CAR
FROM THE CLOUD. THEY ARE COMBINED.
BUT EVERYTHING THAT IS CONTEXTUAL FOR THAT MOMENT, THE
AI IN THE CAR. ED: DAYS, WEEKS, MONTHS, WHEN DOES
THAT HAPPEN? CRISTIANO: IT IS VERY DIFFICULT TO MAKE A
PREDICTION. ED: BROADLY? CRISTIANO:
I AM AN OPTIMIST. I THINK WE WILL START TO SEE NEXT YEAR IN
2024 A LOT RICHER -- THANK YOU. WE WILL SEE A LOT RICHER
ABILITY TO USE AI FOR PHOTOGRAPHY, HOW PEOPLE SHARE
INFORMATION WHETHER IT IS ON WHATSAPP OR GOOGLE MESSAGES.
HOW THEY WILL SHARE PHOTOS, CREATE CONTENT.
YOU WILL SEE THAT NEXT YEAR. I THINK YOU WILL SEE A LOT OF
PRODUCTIVITY NEXT YEAR. WE TALKED WITH MICROSOFT.
WE HAD INCREDIBLE DEMOS THAT MICROSOFT BUILT SHOWING THE
COPILOT OF ALL THE MICROSOFT APPLICATIONS RUNNING ON OUR AI
ENGINE IN OUR FUTURE SMC WITH OUR CUSTOM CPU IN 2024.
THIS IS ANOTHER INTERESTING THING. ENTERPRISE APPLICATIONS. WHEN THE CHATGPT WING HAPPENED,
IT WAS AN INCREDIBLE THING -- WHEN THE CHATGPT THING
HAPPENED, IT WAS AN INCREDIBLE THING. WE SIT EXPERTS TO VERIFY THE
SCOPE BECAUSE THAT IS GOING TO GO INTO THE WILDERNESS.
ENTERPRISES REALLY WANT THINGS FOR CERTAIN APPLICATIONS TO RUN
THE DATA LOCALLY. MICROSOFT HAS AN INCREDIBLE
TECHNOLOGY THAT IT CAN PROVIDE A DATA SET THAT CAN BE AN EXCEL
SPREADSHEET AND YOU APPLY THE MODEL ON THAT SPREADSHEET.
THAT IS A GREAT EXAMPLE OF WHY YOU WANT TO RUN THOSE THINGS
LOCALLY. SOME ENTERPRISES MAY NOT WANT
TO SEND THE DATA TO THE CLOUD AND THAT IS HOW THE ENTERPRISE
WORKS. ED: I KNOW YOU AND YOU THAT YOU
WOULD BE FIRED UP ABOUT THIS AND I ONLY HAVE 30 SECONDS LEFT.
I WAS -- HOW IS DOING BUSINESS WITH BEIJING? CRISTIANO:
WE HAVE A GREAT PARTNERSHIP WITH OUR CUSTOMERS IN CHINA.
I THINK QUALCOMM IS PROBABLY ONE OF THE FEW EXAMPLES OF VERY
SUCCESSFUL PARTNERSHIP AND BUSINESS WITH CHINA.
ALL OF OUR CUSTOMERS IN CHINA PAY INTELLECTUAL PROPERTY ON
SEVERAL PATENTS. WE HAVE A VIBRANT BUSINESS ON
THE PHONE SPACE WITH COMPANIES LIKE ONE PLUS, VEVO, ETC..
AS CHINA BUILDS THE INDUSTRY FOR EV, WE ARE GROWING IN
INDUSTRIAL, HERE IS HOW I SEE IT. IF YOU ARE A LEADER ON A
PARTICULAR TECHNOLOGY, YOU WILL HAVE BIG BUSINESS IN CHINA AND
THAT IS WHAT WE ARE SEEING AT QUALCOMM RIGHT NOW. ED:
DOES AI COMPLICATE THAT RELATIONSHIP WITH CHINA?
CRISTIANO: NO. IF YOU THINK ABOUT WHAT IS
HAPPENING ON PHONES, EVERYTHING AT THE EDGE, IT IS ONE OF THOSE
THINGS THAT IS VERY DIFFICULT TO MAKE PREDICTIONS IN POLITICS
BUT TO THIS DATE WE HAVE BEEN ABLE TO CONTINUE TO SUPPORT
DEVELOPMENT ON AI AND ACROSS ALL OF THE DIFFERENT INDUSTRIES IN CHINA, THERE IS VERY
INTERESTING DEVELOPMENT HAPPENING TO SUPPORT CONTENT
AND SUPPORT CREATORS. ED: MAKING THE CASE BASICALLY FOR THE FUTURE OF AI BEING ON WHAT
YOU ARE ALL ON RIGHT NOW, SMARTPHONES. THANK YOU.
CRISTIANO: THANK YOU VERY MUCH.
