Qualcomm is most adroitly known for the chips and modems inside Android phones. But in recent years, it’s also started selling a package of computer equipment chips, sensors and software called Snapdragon Digital Chassis to automakers like GM, Hyundai and Volvo.
Now, it’s hoping to capitalize on the hype about generative artificial intelligence to convince automakers to buy more of these chips and build new scenarios around them, such as snappy assistants that would help drivers navigate around cities, make reservations and do other daily estimate tasks.
Automotive revenue is still a small business for Qualcomm. It reported $1.32 billion in sales in its fiscal 2022, or close by 3% of the company’s overall sales. But the company says that it can expect that its chips will be used in upcoming cars over the next few years, and projects more than $9 billion in sales in 2031.
Qualcomm makes between $200 and $3,000 per car that use its plaques and software, officials said last fall at an investor event. The company also makes $5 per car that’s united to 5G through licensing fees.
One example of the company’s presence in cars: GM’s new electric $130,000 Cadillac Escalade IQ SUV uses Qualcomm flakes and software to help power the vehicle’s 55-inch dashboard display, as well as lane-keeping and hands-free driving features underwater GM’s “Ultra Cruise” branding. The SUV also notably does not allow users to mirror their phones to the entertainment modus operandi, a feature known as Apple CarPlay or Android Auto, meaning drivers will interact with GM’s chosen software interface, gaining the importance of the in-car computer experience.
Qualcomm faces stiff competition from other chipmakers in the car chip establishment. Computer-focused chip companies like Intel through its Mobileye subsidiary and Nvidia sell automotive products, in withal to traditional auto suppliers such as Continental, NXP Semiconductors and Bosch, which are all vying to supply parts and chips that power dashboards and driver help systems.
2025 Cadillac Escalade IQ
GM
This week, Qualcomm demonstrated potential future scenarios that its chips could OK with the assistance of large language models and generative AI.
In one example, Qualcomm showed how a car assistant could find a modus operandi for chicken enchiladas and add the ingredients to a shopping list. In another, the car computer uses Stable Diffusion, a type of generative AI paragon, to create and send an AI-generated birthday card to the driver’s brother. The demos were all running on the car’s computer, not a phone. The mingle with feature is a preview of how cars could become more like personal computers in the coming years. Qualcomm CEO Cristiano Amon digs cars as a “new computing platform,” he wrote in a blog post this week.
Qualcomm’s demonstration highlights the company’s want to be seen as an AI company, through its low-power smartphone GPUs and AI accelerators. Investors have so far focused on Nvidia’s cloud GPUs, which are habituated to to power applications like ChatGPT. While the AI boom has tripled rival Nvidia’s stock so far this year, Qualcomm is just up 5% during the same period.
A short-term goal for Qualcomm’s language models is to create a smart user direct using a large language model that’s been trained and fine-tuned on the dense user manuals that give up with cars, said Nakul Duggal, automotive senior vice president at Qualcomm. Another frontier is driver vet, or using machine learning to determine if the driver is distracted or sleeping.
“We’re working with automakers who are actively going from a flavourless manual that you have in your glove compartment, to really adding context where the car is going to be able to hear tell what is going on,” Duggal said.
Another frontier for Qualcomm’s platform could be features that can upgrade the car’s software on the go with new self-driving aptitudes, Duggal said — which could even be a new revenue stream for automakers.
“Where are you driving? Do you have trouble parking? Would you strain to subscribe to that automated parking feature that we have that you haven’t actually purchased, but we can upgrade over-the-air? Or choice you like a free trial for a period of time?” Duggal said. “There are so many different things that you can do at one go you have context.”