Qualcomm aims to dominate data centers with Nvidia chip connection

In the U.S., Qualcomm has announced its intention to enter the data center processor market, specifically targeting artificial intelligence applications. This event occurred on May 19, 2025, when Qualcomm outlined its strategy during a presentation at Computex in Taipei, Taiwan. The introduction of custom processors is designed to work seamlessly with Nvidia's graphics processing units (GPUs), which are crucial for training large AI models used in applications such as chatbots. Qualcomm's re-entry into this highly competitive space follows their acquisition of Nuvia in 2021, a move intended to bolster their capabilities in designing Arm-based processors suitable for data center use. Qualcomm's decision to expand into data center technology reflects a larger strategy to diversify its operations. Traditionally known for its chips and modems for smartphones, under the leadership of CEO Cristiano Amon, the company has been actively seeking new growth avenues, including automotive and personal computer chips. Amon has noted that more than 85 designs of PCs are currently available or in development, featuring the Snapdragon X Series chips. The company plans to unveil a new PC chip at their annual summit in September. In addition to their focus on processor development, Qualcomm is also exploring partnerships to enhance their standing in the market. Recently, they signed a memorandum of understanding with the Saudi Arabian AI firm Humain to collaborate on data centers. This partnership aligns with the trend of various U.S. technology companies forming agreements in the Saudi region, particularly under the auspices of the Saudi Public Investment Fund. The collaboration underlines the significance of establishing a local presence in a rapidly growing AI and data center sector that is becoming increasingly vital on a global scale. Ultimately, Qualcomm's strategy to integrate its custom processors with Nvidia’s infrastructure highlights the increasing relevance of tailored combinations for AI-driven applications. As major players in the cloud computing industry, like Amazon and Microsoft, have already created their own custom CPUs, Qualcomm’s commitment to innovation in this field will be critical for competing effectively. The convergence of Qualcomm's efforts with Nvidia’s established technology could lead to enhanced efficiency and performance in data-driven applications, marking a significant turning point in the tech landscape.