TAIPEI, Taiwan – May 20, 2025 – Qualcomm announced on Monday that it plans to launch a new line of custom processors designed for data centers to power artificial intelligence workloads. The chips will be compatible with Nvidia’s graphics processing units (GPUs), which have become essential in training large AI models used in applications like chatbots.
Nvidia’s GPUs are widely deployed in data centers and are often paired with CPUs, a segment traditionally dominated by Intel and AMD. Qualcomm’s upcoming CPU is being designed to integrate with Nvidia’s hardware and software ecosystem, a strategic move aimed at gaining traction in the AI infrastructure market.
This marks Qualcomm’s return to the data center CPU space after previous attempts in the last decade yielded limited success. In 2021, the company acquired Nuvia, a startup known for designing high-performance processors based on the Arm architecture. Nuvia’s technology has become a cornerstone of Qualcomm’s renewed push into the server chip market.
“We see a lot of growth in this space for decades to come, and we have technology that can add real value,” said Qualcomm CEO Cristiano Amon in an interview with CNBC. “So I think we have a very disruptive CPU.” While Amon did not disclose a specific launch date, he said the CPU roadmap and release timing would be announced soon.
The data center CPU market remains highly competitive. Major cloud service providers like Amazon and Microsoft have already developed and deployed custom processors, while AMD and Intel continue to lead in market share. Despite this, Amon expressed confidence that Qualcomm can carve out a position by delivering innovation and differentiated technology.
“As long as we can build a great product, bring innovation, and add value, there’s room for Qualcomm in the data center,” Amon said. “It’s a very large market that will continue to see investment for decades.”
Qualcomm’s push into the data center is part of a broader diversification strategy, as the company seeks to reduce reliance on smartphone chip sales. Apple, one of Qualcomm’s largest customers, has started developing its modems, prompting the company to expand into automotive chips, PCs, and now servers.
Last week, Qualcomm signed a memorandum of understanding with Saudi-based AI firm Humain, which is backed by Saudi Arabia’s Public Investment Fund, to jointly develop AI-focused data centers. The partnership aligns with a growing trend of U.S. tech firms investing in Middle
Eastern AI infrastructure.
According to Mario Morales, group vice president of semiconductors at IDC, Qualcomm’s entrance into the data center space is a logical step for its long-term growth. “Over the coming five years, the data center will be the fastest-growing segment in semiconductors,” Morales said. “This announcement signals Qualcomm’s intent to become a serious player in that market.”
At the Computex tech conference in Taipei, Amon also highlighted progress in Qualcomm’s PC chip business. He said more than 85 PC models using the company’s Snapdragon X Series chips are either available or in development. He also announced that Qualcomm will unveil a new PC processor at its annual summit in September.
Qualcomm continues to promote its chips as energy-efficient and capable of running AI tasks directly on devices, instead of relying solely on cloud processing. The company says this approach allows for faster, more secure AI applications.
With its renewed focus on AI, data centers, PCs, and automotive, Qualcomm is positioning itself to become a more diversified and competitive force in the semiconductor industry.
