SAN DIEGO: Qualcomm announced Monday that it is developing a custom central processing unit (CPU) for data centers that will integrate with Nvidia’s graphics processing units (GPUs) and software, marking a strategic expansion beyond its traditional mobile chip business.
The move underscores the critical role of Nvidia’s infrastructure in artificial intelligence (AI), as its GPUs are widely used to train and run large AI models. Qualcomm’s decision to link its processors to Nvidia’s technology reflects the increasing demand for AI-optimized computing in data centers, a space dominated by Intel and AMD.
Qualcomm’s entry into the data center sector is a revival of past efforts that previously fell short. In 2021, the company acquired Nuvia, a firm specializing in Arm-based processor designs, strengthening its push into data center CPU development.
The data center chip market remains highly competitive, with major cloud providers such as Amazon and Microsoft designing custom CPUs for their operations. Qualcomm’s approach centers on power efficiency, with an emphasis on enabling AI processing directly on devices rather than relying solely on cloud infrastructure—a move that could enhance security and speed.
The announcement comes amid Qualcomm’s broader push to diversify its business beyond smartphone processors and modems, especially as key customers like Apple are moving towards self-developed modem technology. Additionally, last week, Qualcomm signed a memorandum of understanding with Saudi-based AI firm Humain to develop data centers, joining a growing number of U.S. tech companies securing agreements in the region.
Qualcomm’s re-entry into the data center market represents a significant shift in its business strategy, with AI-driven computing at its core.