Qualcomm Inc. shares tumbled in premarket trading on Monday, driven by a tech industry analyst’s claim that the chipmaker is collaborating with AI heavyweight OpenAI on smartphone applications. The report, released ahead of the open market, sparked immediate investor interest, with shares plunging over 10% before closing.

Qualcomm, a leader in semiconductor manufacturing, has long been at the forefront of smartphone innovation. The alleged partnership with OpenAI—a pioneer in generative AI—could give Qualcomm a significant edge in the competitive smartphone market by enabling more advanced in-device AI capabilities. This collaboration may also boost Qualcomm’s revenue streams, as OpenAI’s technology could be integrated into Qualcomm’s products.

The development raises questions about Qualcomm’s strategic positioning in the rapidly evolving AI landscape. As smartphone manufacturers race to incorporate AI features, a partnership with OpenAI could solidify Qualcomm’s dominance in this space. Investors are now closely watching how Qualcomm will leverage this collaboration, which could have far-reaching implications for the company’s financial performance and market share.