In a significant move to diversify its business, Qualcomm has announced plans to launch custom central processing units (CPUs) for data centers. The processors are designed to integrate seamlessly with Nvidia’s powerful graphics processing units (GPUs) and software, a critical step in the increasingly competitive AI-driven data center market.
Key Highlights
- Qualcomm’s new CPUs are engineered to connect with Nvidia’s GPUs, which play a vital role in training large-scale AI models.
- The announcement marks Qualcomm’s re-entry into the data center market after earlier ventures failed to gain traction.
- This development is part of Qualcomm’s broader strategy to expand beyond its traditional smartphone processor and modem business.
Nvidia Integration: A Crucial Step for AI Dominance
Nvidia’s GPUs have become essential in data centers, primarily for their ability to power artificial intelligence (AI) applications like chatbots and machine learning models. These GPUs are commonly paired with CPUs, a market currently dominated by industry heavyweights Intel and AMD. Qualcomm’s decision to design CPUs that interface with Nvidia’s infrastructure underscores the importance of Nvidia’s technology in modern AI workflows.
“AI processes demand a robust and efficient pairing of GPUs with CPUs,” Qualcomm CEO Cristiano Amon said during his Computex 2025 presentation in Taipei, Taiwan. “Our custom CPUs are designed with this synergy in mind, offering unparalleled performance and energy efficiency.”
A Return to the Data Center Market
This announcement represents Qualcomm’s second attempt to penetrate the data center CPU market. The company’s previous efforts in the last decade were unsuccessful. However, Qualcomm’s 2021 acquisition of Nuvia, a company specializing in designing processors based on Arm architectures, has been instrumental in reviving its ambitions.
The data center CPU market remains fiercely competitive, with cloud giants like Amazon and Microsoft developing their own custom processors. Meanwhile, Intel and AMD maintain a stronghold in the sector. Qualcomm’s re-entry signals its intent to challenge these established players.
Global Partnerships and Expansion
In addition to its product launch, Qualcomm recently signed a memorandum of understanding with Saudi-based AI firm Humain, which operates under Saudi Arabia’s Public Investment Fund. This partnership aims to develop advanced data centers, further cementing Qualcomm’s presence in the global market.
Beyond Smartphones: Qualcomm’s Diversification Strategy
Under CEO Cristiano Amon, Qualcomm has aggressively diversified its business. Beyond data centers, the company has ventured into automotive chips and PCs. Amon revealed that over 85 PC designs featuring Snapdragon X Series chips are either in development or already on the market. The company plans to unveil its next-generation PC chip at its annual summit in September.
Qualcomm is also promoting its processors as energy-efficient solutions capable of running AI processes directly on devices. This “on-device AI” approach offers several advantages, including faster performance and enhanced security by limiting the need for data transmission to the cloud.
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