Google is bullish on the prospect of its more advanced artificial intelligence models coming to smartphones in the next year.
The internet giant expects that its currently available Gemini large language model (LLM), which competes with Microsoft-backed OpenAI’s most powerful GPT-4 AI model, will begin to get embedded into devices starting next year.
Google already offers Gemini Nano, which is the company’s most efficient model for “on-device” AI, across its Pixel devices and on all other capable Android devices.
Brian Rakowski, vice president of product management for Google’s Pixel unit, said that he expects the company’s most advanced large language models, which are currently only accessible via remote data centers via an internet connection, to begin arriving on smartphones directly next year.
“There are smaller versions of our Gemini model on the cloud,” Rakowski told CNBC. “There’s been quite a few breakthroughs to compress these models to get them to run on device.”
“Some have already been proven and some are being explored for some applications. It’d be great having all models on device. It still has wondrous applications.”
“Gemini Nano is performing at a level that our online models were at less than one year ago,” Rakowski added. “You can do a lot with these distilled small versions of the models on device.”
“If you just follow that trajectory, some of that stuff we thought we would have had to go to the cloud for next year will be on device, which is pretty exciting, which is instantaneous without requiring a connection or subscription.”
Large language models, or LLMs, are AI models capable of understanding and generating language in a humanlike way. Gemini Ultra is Google’s top LLM, clocking in at a whopping 1.56 trillion parameters. For comparison, OpenAI’s GPT-4 consists of 1.76 trillion parameters.
Analysts say a supercycle is unlikely to occur within the next few years as there’s not enough going on in the market in terms of novel features and innovation that will convince people holding their aging smartphones to upgrade.
“Unfortunately, we don’t expect that boom,” Francisco Jeronimo, vice president of data and analytics at research firm IDC, told CNBC.
“The last supercycle we saw was between 2010 and 2015, where in five years the market grew five times from around 300 million smartphones per year to 1.5 billion.”
Nonetheless, more and more smartphone makers are making big investments in AI in the hope that it will drive some more excitement around mobile technology.
The likes of Humane, Rabbit, and China’s Meizu are betting on a future for smartphones that doesn’t even look like a traditional smartphone. These are devices that would be smaller and more compact, and that we could interact with via voice activation, like an Amazon Echo speaker but on the go.
Google has been making huge bets on AI in an effort to gain an edge over its rivals like OpenAI, the Microsoft-backed company behind ChatGPT.
Google recently announced a major rebrand of Bard, its ChatGPT alternative, including a fresh app and subscription options. Bard was renamed Gemini, the same name as the suite of AI models that power the chatbot.
Android users can download a dedicated Android app for Gemini, while iPhone users can use Gemini in the Google app on iOS.
Alphabet CEO Sundar Pichai highlighted the firm’s commitment to AI during the company’s Jan. 30 earnings call. Pichai said he eventually wants to offer an AI agent that can complete more and more tasks on a user’s behalf, including within Google Search, although he said there is “a lot of execution ahead.”
Likewise, chief executives at tech giants from Microsoft to Amazon have underlined their commitment to building AI agents as productivity tools.
On Monday the flagship cryptocurrency was last higher by nearly 1% at $106,622.54, according to Coin Metrics. Earlier, it rose as high as $109,350.72, after briefly dipping below the $100,000 mark Sunday.
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Bitcoin hits a new record ahead of Trump inauguration
Over the weekend, Trump launched the “Official Trump” meme coin, which has risen to a $10.6 billion market cap and surged more than 659% since Friday night, according to data from CoinGecko and Coinbase. On Monday it was down about 27% from its record price of around $73 a coin, after returning First Lady Melania Trump launched her own “Melania” meme coin Sunday — nearly halving the Trump coin in value at one point.
Melania Meme, which began trading Sunday evening, has hit a $1.3 billion market cap and 14% price increase since its launch. It has attracted $7.3 billion in trading volumes over the last day, compared to the Trump meme’s $31 billion.
Although meme coins are considered the riskiest corner of the already risky cryptocurrency market, the Trumps’ coin launches over the weekend gave traders further conviction that the incoming administration will be positive for the industry.
“The move highlights President Trump’s embrace of crypto and belief that Americans should have the freedom to operate in the emerging asset class,” said Joel Kruger, market strategist at LMAX.
“There is a logic here that would suggest that putting a stamp of approval on what could be perceived as the wildest of crypto assets, meme coins, is the best way to send a message of just how supportive the market should expect the administration to be when it comes to embracing crypto and making America a major player in the space.”
Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter, echoed that sentiment, calling the meme drops net positive and “a sign he is very much in favor of new ideas [and] new markets.”
Bitcoin started gaining steam last week as speculation started to build that Trump might announce an executive order on crypto early in his new term. Gracy Chen, CEO crypto exchange Bitget, said that optimism is having a greater effect on its price.
“Rumors that cryptocurrency may be declared a national interest by the United States during the inauguration are having a positive effect on the price of bitcoin,” she told CNBC. “I don’t believe the rise in bitcoin’s price is due to the launch of new meme tokens. Rather … without the release of the Trump family tokens, bitcoin’s price would have grown more. Instead, capital shifted to new coins, limiting overall growth.”
The broader crypto market, as measured by the CoinDesk 20 index, fell 1% on Monday and has gained less than 1% since Saturday. The token tied to Solana is down more than 7% on Monday but up 15% since Saturday, benefitting from the Trump meme coin being launched on the popular Ethereum alternative network. Ether has lost 5% since Saturday.
Bitcoin’s new record opens the door to a possible upside extension to $130,000, LMAX’s Kruger added.
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U.S. President-elect Donald Trump has accused Taiwan of “stealing” his country’s chip industry. But Taiwan’s biggest chip company is confident the Trump administration will continue funding its projects in the U.S.
Speaking to CNBC’s Emily Tan in an exclusive interview, TSMC Chief Financial Officer Wendell Huang said the funding was expected to continue to roll in gradually under Trump as the fabrication plants pass construction and production milestones.
“As a matter of fact, in the fourth quarter, we already received the first batch of government support,” Haung said, revealing the contract chip manufacturer had got $1.5 billion in funds.
Following some production delays, the first fabrication plant in Arizona started producing advanced chips in the fourth quarter of last year, Huang said. He added that the construction of two plants in Arizonawas on track, with the second expected to be operational in 2028.
TSMC’s first investment in Arizona was announced in May 2020, with the company’s total investment in the its three projects there eventually standing at over $65 billion.
Much of the investments were committed after the Biden administration signed the bipartisan CHIPS Act in August 2022, committing almost $53 billion to invest in the domestic semiconductor supply chain and counter China.
While the incoming President is also expected to make competition with China and onshoring manufacturing a priority in his second term, there has been debate as to whether Trump and the Republican-led House would re-examine the CHIPS Act.
During his campaign for the White House, Trump publicly criticized the bill and its price tag, arguing instead that tariffs were a more effective strategy to onshore chip manufacturing. The President-elect also accused Taiwan of “stealing” U.S. chip business.
However, industry experts have told CNBC that they expect Trump to leave the policy mostly intact due to its bipartisan support in Washington.
TSMC on Thursday reported record profit for the fourth quarter on strong demand for its AI chips, sending its shares up nearly 4%. Shares closed 1.36% higher on Friday.
In an earnings call following the esults, CEO and Chairman C.C. Wei highlighted TSMC’s “long-standing and good relationship” with the U.S. government and the commitment and support it has received on the federal, state and city levels.
“Let me assure you that we have a very frank and open communication with the current government and with the future one also,” he said in response to an investor question.
On Thursday, Wei also said that the company would not attend Trump’s inauguration as it prefers to keep a low profile.
TikTok was available to some U.S. users on Sunday after President-elect Donald Trump said that he would sign an executive order on Monday to delay a federal ban of the app.
In a statement on X, the company wrote that it would bring back access to its American users.
“In agreement with our service providers, TikTok is in the process of restoring service,” TikTok wrote. “We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.”
The decision is “a strong stand for the First Amendment and against arbitrary censorship,” the company added. “We will work with President Trump on a long-term solution that keeps TikTok in the United States.”
This came after Trump wrote on his social media app Truth Social he would “issue an executive order on Monday” to extend the period of time before the ban was set to take place.
“I’m asking companies not to let TikTok stay dark!” Trump wrote on Sunday morning.
Although TikTok was shut down for American users late Saturday night, and also removed from Apple and Google’s app stores, some were able to log on to the platform on Sunday through their desktops.
This is a breaking news story. Please check back for updates.