Qualcomm Announces Data Center CPUs to Enhance AI Capabilities

SAN FRANCISCO/TAIPEI, May 19 (Reuters) – Qualcomm announced on Monday plans to launch custom central processing units (CPUs) designed for data centers, aiming to improve artificial intelligence applications. The company’s CPUs will connect with Nvidia’s graphics processing units (GPUs), a vital component of data centers used to train AI models such as chatbots.

Nvidia’s GPUs have proven essential for AI-related tasks, and Qualcomm’s strategic move to provide a custom CPU highlights the importance of integrating with Nvidia’s infrastructure in this highly competitive market. Traditionally, the CPU market has been dominated by Intel and Advanced Micro Devices.

“I think we see a lot of growth happening in this space for decades to come, and we have some technology that can add real value,” said Qualcomm CEO Cristiano Amon in an interview with CNBC. Amon indicated that the company plans to announce the CPU roadmap and release timing soon, although he did not provide specific dates.

This marks Qualcomm’s re-entry into the data center CPU market. The company had previously attempted to develop an Arm-based CPU in the 2010s but halted those efforts due to cost issues and legal challenges. Following its acquisition of Nuvia, Qualcomm is now reviving its data center ambitions.

Last week, Qualcomm also signed a memorandum of understanding with Saudi Arabia-based AI firm Humain, which operates under the Public Investment Fund. This collaboration is part of Qualcomm’s broader strategy to diversify its business beyond smartphone processors and modems.

Mario Morales, a group vice president at the International Data Corporation, emphasized the significance of Qualcomm’s entrance into the data center market, stating, “Over the coming five years, the data center will be the fastest growing segment for the semi market.” Morales noted that Qualcomm’s entry could shift the competitive landscape, allowing it to leverage its technology in this space.

As Qualcomm positions itself for a larger role in AI and data centers, Amon pointed out the company’s ongoing work in the automotive sector with Snapdragon chips, stating there are now over 85 PC designs in development. Additionally, he mentioned that Qualcomm plans to unveil a new PC chip during its upcoming annual summit.

Qualcomm aims to create power-efficient chips capable of running AI processes directly on devices, enhancing speed and security. This strategic direction aligns with the increasing demand for on-device AI applications.