Samsung Electronics Co.’s pivotal chip division reported a smaller-than-expected profit as the world’s largest memory chipmaker fights to narrow the lead arch-rival SK Hynix Inc. has in the artificial intelligence arena.

Samsung Electronics reported fourth-quarter profit that rose 130% from a low base, confirming it had missed earlier estimates due to slowing memory chip demand and extra costs as it works towards providing high-end chips to Nvidia.

It’s no secret I’ve been critical of Galaxy AI in its current form on the new Samsung Galaxy S25 phones. It needs a bit more polish to be ready for prime time, especially if Samsung wants to use it as the main reason you’d buy a new Samsung in 2025.

The AI features on Samsung's Galaxy S25 phones uses both on-device and cloud-based AI models, including the touted AI assistant.