So here's the thing about artificial intelligence: it doesn't always need to live in a giant, power-hungry data center. Sometimes, you just want your smartwatch to recognize your workout or your robot vacuum to navigate around your dog without having to phone home to the cloud. That's the bet Texas Instruments Inc. (TXN) is making with a pair of new chips it announced Tuesday.
The company is expanding what it calls "edge AI"—putting the brains directly into the device—with two new microcontrollers. Think of these as tiny, specialized computers. The MSPM0G5187 and the AM13Ex are designed to handle AI tasks locally. That means faster responses (no waiting for a signal to go to the cloud and back) and, crucially, much lower power consumption. For gadgets that run on batteries, that's everything.
Texas Instruments says the secret sauce is a special component built into the chips that handles AI calculations more efficiently. The performance claims are pretty eye-catching: compared to similar chips without this feature, the new design can process AI tasks up to 90 times faster while using more than 120 times less energy. That's the kind of leap that could make new product categories feasible.
The target markets are a who's who of the connected future: health wearables, home automation systems, robots, and industrial machines. The MSPM0G5187 is the general-purpose option and it's already available. In a move that will make product designers very happy, Texas Instruments says it can keep costs low, with prices dipping below $1 when bought in large quantities.
The AM13Ex is a bit more specialized. It's built for motor control, the kind you'd find in home appliances, robotic arms, or factory conveyor systems. The idea is to let a single chip manage multiple motors while simultaneously running AI programs that monitor performance and tweak things for better efficiency. This chip is currently available in limited pre-production quantities, with broader versions expected to hit the market by the end of 2026.
But launching new chips is only part of the story. In a move that shows Texas Instruments is thinking about the whole system, the company recently agreed to a major acquisition. It's snapping up Silicon Laboratories Inc. (SLAB) in an all-cash deal valued at about $7.5 billion.
Under the agreement, Texas Instruments will pay $231 in cash for each Silicon Labs share and plans to fund the transaction using cash on hand and arranged debt. The deal is expected to close in the first half of 2027, pending the usual regulatory approvals and other closing conditions.
So why buy a wireless chip company when you're launching AI microcontrollers? It's about the portfolio. This acquisition will add about 1,200 wireless connectivity products to Texas Instruments' lineup. The plan is to marry Silicon Labs' expertise in wireless and mixed-signal technology with Texas Instruments' own deep strengths in analog and embedded processing. In short, they're not just building a smarter chip; they're building a smarter, connected chip ecosystem.
Investors seemed to give a cautious nod to the dual announcements. Texas Instruments shares were up 0.15% at $196.49 during premarket trading on Tuesday, according to market data.
