The race is on to bring the technology behind ChatGPT to the smartphone in your pocket. And to judge from the surprising speed at which the technology is advancing, the latest moves in AI could transform mobile communications and computing far faster than seemed likely just months ago.

As tech companies rush to embed generative AI into their software and services, they face significantly higher computing costs. The concern has weighed in particular on Google, with Wall Street analysts warning that the company’s profit margins could be squeezed if internet search users come to expect AI-generated content in standard search results.

Running generative AI on mobile handsets, rather than through the cloud on servers operated by Big Tech groups, could answer one of the biggest economic questions raised by the latest tech fad.