Qualcomm has decided to move its reference platforms to the most recent generation of Arm's architecture, a step aimed at improving the execution of workloads Artificial Intelligence such as chatbots and image generators, according to people familiar with the matter. The move strengthens its position against direct competitors and could increase income from Arm thanks to the rates associated with its most advanced technologies.
The move clears up doubts about the continued collaboration between the two companies after their legal clash last year, and comes accompanied by signs on the court: after the news broke, advanced around 5% Arm shares rose sharply during trading, reflecting market interest in adopting the latest wave of technology.
What changes with the new architecture
According to sources consulted, the new Qualcomm processors for PCs and mobile phones will now use the ninth version (v9) of the Arm architecture. In practice, this architecture defines the instruction set supported by the CPU and provides enhancements designed to accelerate generative AI tasks and other intensive processes, with a focus on efficiency and performance.
Unlike previous generations, where Qualcomm maintained previous technologies, migration to v9 represents a qualitative leap aimed at manage more easily loads such as conversational assistants and image creation, areas that have become key levers of use on personal devices.
Impact on the market and competition
Qualcomm's turnaround comes at a time when MediaTek has already confirmed its use of Arm v9 and in which most analysts assume that Apple also uses it in its designs. On that board, Qualcomm's technological update aims to strengthen its ability to compete in high-end mobile phones and PCs, where AI capabilities are beginning to make a tangible difference.
For Arm, the potential benefit is clear: its revenue model grows with the adoption of the latest versions. However, quantifying the impact is not easy because Qualcomm licenses the architecture, but designs a good part of the chip internally instead of purchasing pre-designed blocks, which dilutes the direct transfer of value.
Position of the companies
Asked about the specific technology used, Qualcomm avoided giving details and stressed that it selects the instructions that add value to its customers, relying on its own CPU design team to decide what to include. Arm, on the other hand, declined to comment about change.
Legal background and licenses
The decision comes after a legal dispute between the two companies that is still not completely resolved. Less than a year ago, Arm reached threaten to revoke a key license to Qualcomm, a position he later qualified. The conflict also involved Qualcomm's acquisition of Nuvia.
On that front, a court in the United States ruled in favor of Qualcomm on key aspects of the case, although Arm has indicated its intention to appeal. This contentious framework adds context to the scope of the announcement and helps to understand why the technological continuity between both parties it was not a minor issue.
Why not other technological routes?
What to expect next
With the transition to v9, Qualcomm seeks to provide its platforms with a better balance between efficiency and performance in AI, an increasingly crucial attribute in laptops and smartphones. The adoption of this architecture by several industry leaders suggests that application support and the ecosystem will continue to expand in upcoming releases.
Qualcomm's commitment to the latest Arm architecture sends a clear signal: it prioritizes the compatibility with existing software and performance gains in AI while maintaining autonomy in design of its CPUs. The move, with both technical and commercial implications, reshuffles the competitive landscape with MediaTek and Apple, points to increased revenue for Arm, and comes against the backdrop of a lawsuit that could yet have further developments.
