Technologies

Qualcomm’s New AR Chips Point to a New Generation of Smart Glasses

The less power-hungry chips support Wi-Fi 7 and eye tracking. They’re expected to arrive in glasses between 2023 and 2025.

Amid a recent uptick in VR headsets, Qualcomm’s latest chip announcement hints that the next product wave could be AR glasses. At the company’s recent chip-focused event, the newest Snapdragon phone processors were announced, along with a brand-new line of AR glasses-optimized chips that point to a next wave of advanced smartglasses expected to arrive between 2023 and 2025, with possible features including eye tracking, hand tracking and wireless streaming to phones or from the cloud.

The Snapdragon AR2 Gen 1 is a different type of platform than the company’s top-end XR2 processor, which is already in standalone VR headsets like the Meta Quest 2 and Pico 4. The AR2 focuses more on camera and sensor-based processing than on graphics, aiming to improve battery life on smaller glasses. The design is split into three co-processors, which are meant to live in each arm of a pair of smartglasses and also above the bridge. It’s meant to cut down on wires and reduce overheating on future glasses designs.

Glasses using the AR2 Gen 1 may be a lot faster at using cameras for scanning and depth sensing: Qualcomm is promising faster AI for things like object recognition and hand tracking than even the XR2 chip found on headsets such as the Quest 2, but using half as much power as the XR2 chip. There’s nowhere to hide a big battery on a normal-ish pair of glasses, which is why the AR2 Gen 1 aims to be efficient in ways that are reminiscent of the needs of wearables like smartwatches.

The AR2 Gen 1 chip won’t be used for traditional VR headsets. According to Qualcomm, the resolution and field of view in AR glasses using these new chips won’t be as good as what current VR is capable of. Existing AR glasses and headsets tend to have smaller viewing areas and rely on occasional pop-up graphics, versus the expansive full-field graphics and displays VR needs.

Qualcomm is leaning heavily on phones, computers and the cloud to do a lot of the heavy lifting for these future glasses. The chipset includes Wi-Fi 7, and a range of phones running Qualcomm’s Snapdragon chips and the Snapdragon Spaces software platform could be used to wirelessly process AR graphics for these glasses. Essentially they’re wearable peripherals, although the glasses could do some things on their own, too.

Eye tracking on the glasses comes with support for iris authentication, which is handled on-glasses with a dedicated security chip. How that gets used by other manufacturers, however, remains to be seen.

Qualcomm’s already announced a wave of familiar tech names that are onboard to make AR glasses with the AR2 chip, including Lenovo, LG, Niantic, NReal, Oppo, Pico, NTT Qonoq, Rokid, Sharp, TCL, Vuzix and Mi. Microsoft and Adobe are also working on making their software platforms cross-compatible, which mirrors recent partnership news with Meta earlier this year.

Partnerships are necessary, especially for devices like smart glasses that are trying to be useful tools in a world of already well-connected phones, computers, wearables and smart home gear. Microsoft has already announced a partnership with Qualcomm on future AR glasses chips earlier this year, and the AR2 Gen 1 looks like it’ll be a part of that evolution beyond the expensive, business-focused HoloLens 2.

Qualcomm previously worked on chips for existing AR headsets and smart glasses, including the NReal Light, Lenovo’s ThinkReality A3 and Meta’s Ray-Ban Stories. However, Qualcomm’s head of XR, Hugo Swart, indicated in a briefing with reporters that current efforts haven’t been good enough at running long enough on a single battery charge to be useful. (Battery life on nearly all existing VR and AR headsets tends to be under 2 hours at best.)

Dreams of the metaverse are, for the moment, held back equally by hardware and software. While VR headsets are slowly adding AR-like features using passthrough cameras, like in the Meta Quest Pro, there aren’t any all-day AR glasses that are actually any good, although some headsets like the Magic Leap 2 are trying to get closer to being useful for practical business uses. Perhaps Meta, which has been promising its own AR glasses for years, will lean on the AR2 Gen 1 as well for a future product.

There’s nothing available yet that resembles the eyeglass tech sci-fi writers have been dreaming of for decades. Qualcomm’s new chips may not lead to perfect AR glasses, but these chips may lead to improved, wireless glasses of the type that haven’t existed previously. Maybe this wave of AR2 Gen 1-enabled glasses could be the start of the true AR eyewear we’ve been waiting for.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know