AI: Samsung vs Apple global 'AI' smartphone race. RTZ #958
Looks like Google Gemini AI is getting a distribution boost from Samsung Galaxy smartphones and devices that is bigger than might be understood.
The reason this is important is of course the market fixation in this AI Tech Wave on the OpenAI vs Google LLM AI chatbot race. And the underlying global smartphone races that will now drive them. These are the kinds of races the world loves.
And the fact that 2026 is the year of competition via DISTRIBUTION between the major LLM AI companies. Not just in the technical features of the underlying LLM AIs and chatbots that’s been the primary driver of this race thus far.
OpenAI is said to have 900 million weekly users of its GPT/ChatGPT 5.2 and earlier versions of AI services. That compares with a recent number of 650+ million for Google Gemini 3 and earlier versions.
I’m on record with my 2026 AI Predictions on our AI Ramblings podcast, that Google with Gemini AI powering its global Google Search Services could reach 2 billion or more mainstream users, by year-end 2026.
Samsung at CES 2026 announced their plans to boost Google Gemini distribution this year and beyond, and the numbers are interesting to say the least.
Reuters lays it out in “Samsung to double AI mobile devices to 800 million units this year”:
“Samsung’s mobile devices with “Galaxy AI” features will double to 800 mln units this year, co-CEO says”
“Galaxy AI is powered by Google’s Gemini, Samsung’s own Bixiby assistant”
“Co-CEO says Samsung not immune to “unprecedented” memory chip shortage”
The key item of course is the first point, which is a Samsung flex of its ‘Galaxy AI’ Smartphones vs Apple’s iPhone line-up. Now both phones are featuring Gemini AI as their underlying LLM AI chatbot technology.
“Samsung Electronics plans to double this year the number of its mobile devices with “Galaxy AI” features largely powered by Google’s Gemini, its co-CEO said, which would give the U.S. firm an edge over rivals as the global race in artificial intelligence heats up.”
“The South Korean company, which had rolled out Gemini-backed AI features to about 400 million mobile products, including smartphones and tablets, by last year, plans to boost that figure to 800 million in 2026.”
““We will apply AI to all products, all functions, and all services as quickly as possible,” T M Roh told Reuters in his first interview since becoming Samsung Electronics co-CEO in November.”
That of course gives Google a distribution leg up vs OpenAI, while also benefiting from its emerging partnership with Apple to use a separate version of Gemini AI for its AI revamped Siri services expected later this year.
“The plan by the world’s largest backer of Google’s Android mobile platform is set to give a major boost to its developer Google, which is locked in a race with OpenAI and others to attract more consumer users to their AI model.”
From Samsung’s perspective, it’s all about competing with Apple iPhones:
“Samsung seeks to reclaim its lost crown from Apple in the smartphone market and fend off competition from Chinese rivals not only in mobile telephones, but televisions and home appliances, all overseen by Roh.”
“It will offer integrated AI services across consumer products to widen its lead over Apple in such features, though the latter was set to be the top smartphone maker last year, according to market researcher.”
Google of course took a lead vs OpenAI last month with Gemini 3, partly causing an internal ‘Code Red’ at OpenAI. Ironically almost exactly three years after OpenAI’s ChatGPT launch on 11/30/22 cause an internal AI ‘Code Red’ at Google in December of 2022.
“Alphabet’s Google launched the latest version of Gemini in November, highlighting Gemini 3’s lead on several popular industry measures of AI model performance.”
“In response to Gemini 3, OpenAI CEO Sam Altman reportedly issued an internal “code red,” pausing non-core projects and redirecting teams to accelerate development. The ChatGPT maker launched its GPT-5.2 AI model a few weeks later.”
Samsung has made headway with its smartphone devices in 2025, especially with its folding smartphones, which it has been reiterating for over seven years. It’s poised to launch its latest tri-fold phones outside of South Korea in the first quarter, building on its widely well received, super-thin, Galaxy bifold 7 smartphones last year.
“Roh expects the adoption of AI to accelerate, as Samsung’s surveys on awareness of its Galaxy AI brand jumped to a level of 80% from about 30% in just one year.”
“Even though the AI technology might seem a bit doubtful right now, within six months to a year, these technologies will become more widespread,” he said.”
It’s still early for mainstream users to use AI features widely on smart phones, be they from Samsung, Apple or Google’s own Pixel phones. Slabs, folds and flips.
“While search is the most used AI feature on phones, consumers also frequently use a range of generative AI editing and productivity tools for images and others, as well as translation and summary features, he said.”
“Galaxy AI is Samsung’s term for its suite of AI features, including those powered by both Google’s Gemini model and Samsung’s own Bixby for different tasks.”
“Samsung shares ended up 7.5% on Monday, as the company is set to flag a profit jump for the fourth quarter later this week, fueled by a global chip shortage.”
That last one is important since memory shortages and rising prices are a key headwind for AI devices I’ve discussed at length already.
Reuters continues:
“A global shortage of memory chips is a boon to Samsung’s mainstay semiconductor business, but pressures margins on the smartphone business, its second largest revenue source.”
“As this situation is unprecedented, no company is immune to its impact,” Roh said, adding that the crisis affects not only mobile phones but other consumer electronics, from TVs to home appliances.”
“He did not rule out raising product prices, saying some impact was “inevitable” from a surge in memory chip prices, but Samsung, the world’s No.1 TV maker, is working with partners on longer term strategies to minimise the impact.”
Industry analysts are already adjusting their expectations on smartphone sales due to memory pricing and availability headwinds.
“Market researchers such as IDC and Counterpoint predict the global smartphone market will shrink next year, as the memory chip shortage threatens to drive up phone prices.”
And Samsung of course is aware of the slow and steady ramp on foldable smartphones. A category that Apple is rumored to be finally entering with their own version later this year.
“Roh said the market for foldable phones that Samsung pioneered in 2019 has been growing slower than expected.”
“He attributed this to the engineering complexities and lack of applications suitable for the hardware design, but expected the segment to go mainstream in the next two or three years.”
“A “very high” rate of foldable phone users opt for the same segment for their next purchase, he said, but gave no details.”
“Samsung controlled nearly two-thirds of the foldable smartphone market in the third quarter of 2025, according to Counterpoint.”
“But it faces competition from Chinese companies such as Huawei, as well as Apple, which is expected to launch its first foldable phone this year.”
All this is of course also in the broader context of a plethora of AI Devices beyond smartphones expected this year. I’ve written extensively about this to date.
But the broader trend of the top two smartphone brands Samsung and Apple, aggressively distributing Google Gemini AI vs OpenAI and other chatbots, is an important tailwind for Alphabet/Google this AI Tech Wave.
A bragging right number brawl for the industry will be AI powered smartphones by the big brands, and the AI chatbots powering them. So it’s Samsung vs Apple, and Google vs OpenAI respectively. Stay tuned.
(NOTE: The discussions here are for information purposes only, and not meant as investment advice at any time. Thanks for joining us here)
