Qualcomm Announces Return to Data Center Market with AI-Focused CPUs Compatible with Nvidia Technology

Qualcomm confirms it's getting into the datacenter market

Computex Qualcomm is preparing products for the datacenter. CEO Cristiano Amon used the last minute of his keynote at the Computex conference in Taiwan to reveal the chipmaker is working on products that he said will be described "soon." Qualcomm quit the datacenter market in 2018 after a failed effort to build Arm servers. Amon said when asked why Qualcomm would return: "If we had something unique and disruptive, there is room for Qualcomm. And I think that is exactly the approach we are taking for the datacenter." "We have some very interesting IP on CPU," he said - a likely reference to its 2021 acquisition of Nuvia - "especially on CPU changed for the age of AI." "CPU becomes very important and especially how we think about clusters of inference that is about high performance at very low power." Amon didn't say when Qualcomm will reveal products. "We're busy," he said. "Hopefully we will do something that will provide a great contribution to the industry." And with that, he left the stage - leaving behind many questions. For what it's worth, CNBC reports Qualcomm plans a custom CPU that interfaces with Nvidia's GPUs and software. The bulk of Amon's speech focused on AI PCs. He opened with news that in the year since Qualcomm's Snapdragon X processors for PCs debuted, the world's top 200 apps are now available in versions specifically coded for the processor, and users spend 93 percent of their time on native apps. He welcomed the imminent debut of a Snapdragon-native version of hit game Fortnite and noted "On Windows there is no drama with Epic" - a nod to disputes between the game's developer and Apple + Google. But later in his talk he said "impatient investors" have asked when the AI PC will take off. His answer was that agentic AI applications will spur uptake by business and consumers alike, and cited examples such as an AI-infused app helping a factory manager understand how to improve efficiency and more quickly produce monthly reports. He also played a video featuring Docker president Mark Cavage praising on-device AI as necessary to help developers produce more agentic apps, and noting the containerization pioneer has ported its development tools to Qualcomm's Snapdragon X PC processors. For now, Amon feels Qualcomm's ten percent PC market share is already a fine achievement and compared it favorably to the uptake of smartphones. Amon also talked up multi-device agentic experiences, saying AI will enable a user to ensure all their devices are aware of their "contexts" so they can move work between smart glasses, smartphones, and AI PCs - and always use the best device for the job. The CEO also teased a new generation of PC processors which he said Qualcomm will disclose in September, and promised they will deliver significant performance gains compared to the current Snapdragon X range. ®

Qualcomm to make data center processors that connect to Nvidia chips

SAN FRANCISCO/TAIPEI, May 19 (Reuters) - Qualcomm on Monday said it will make custom data center central processing units, or CPUs, that use technology from Nvidia to connect to Nvidia's artificial intelligence chips. Nvidia's chips are dominant in the AI market but always paired with CPUs, a market traditionally dominated by Intel and Advanced Micro Devices. Nvidia has jumped into the CPU market itself, designing a chip using technology from Arm Holdings to develop its own "Grace" CPU. On Monday, Qualcomm said it would return to the data center CPU market. In the 2010s, Qualcomm began developing an Arm-based CPU that it tested with Meta Platforms, but curtailed those efforts amid cost cuts and legal challenges. But after acquiring a team of ex-Apple chip designers in 2021, Qualcomm has quietly revived those efforts, again holding discussions with Meta about a data center CPU. Qualcomm last week confirmed that it has a letter of understanding with Saudi Arabian AI firm Humain to develop a custom data center CPU. On Monday, Qualcomm said that its future chips would use technology from Nvidia that will help them communicate quickly with Nvidia's graphics processors (GPUs), which are the mainstay of its AI chip portfolio. "With the ability to connect our custom processors to Nvidia's rack-scale architecture, we're advancing a shared vision of high-performance energy-efficient computing to the data center," Cristiano Amon said on Monday. Reporting by Stephen Nellis in San Francisco and Max A. Cherney in Taipei; Editing by Sam Holmes Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Media & Telecom Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

Qualcomm to launch data center processors that link to Nvidia chips

Cristiano Amon, CEO & President, Qualcomm, on Centre Stage during day one of Web Summit 2024 at the MEO Arena in Lisbon, Portugal. Qualcomm on Monday said it plans to launch processors designed for data centers to power artificial intelligence, which will link to Nvidia's chips. Nvidia's graphics processing units (GPUs) have become a critical component in data centers used to train huge AI models that power applications like chatbots. They are often paired with a central processing unit (CPU) -- a market dominated by Intel and AMD. Qualcomm said it is planning to launch a custom CPU for the data center that can connect to Nvidia's GPUs and software. A link to Nvidia's infrastructure is key for any player hoping to crack into the data center given the relevance of the U.S. chip giant's semiconductors for AI. The announcement actually marks a re-entry into the data center market for Qualcomm after previous efforts last decade bore little fruit. In 2021, Qualcomm acquired Nuvia, which designs processors based on Arm designs and has been key to the U.S. tech titan's efforts with data center CPUs. The data center CPU market remains highly competitive. Big cloud computing players like Amazon and Microsoft already design and deploy their own custom CPUs. AMD and Intel also have a strong presence. Last week, Qualcomm signed a memorandum of understanding with Saudi-based AI frim Humain to develop data centers, joining a slew of U.S. tech companies making deals in the region. Humain will operate under Saudi Arabia's Public Investment Fund. Getting into the data center is part of a broader strategy from Qualcomm to diversify its business, which has traditionally been dominated by sales of processors and modems for smartphones. Under CEO Cristiano Amon, Qualcomm has moved into chips for cars as well as PCs -- a market historically dominated by Intel. Amon said on Monday that there are now more than 85 PC designs that are on sale or in development with Snapdragon X Series chips, which were first announced in 2023. Qualcomm is pitching its chips as power efficient and capable of running AI processes on a device, rather than in the cloud, where they are typically done now. Some of the touted advantages of on-device AI include faster AI apps and more security, since data doesn't need to leave a piece of hardware.

Qualcomm to make data center processors that connect to Nvidia chips

Qualcomm on Monday said it will make custom data center central processing units, or CPUs, that use technology from Nvidia to connect to Nvidia's artificial intelligence chips. Nvidia's chips are dominant in the AI market but always paired with CPUs, a market traditionally dominated by Intel and Advanced Micro Devices. Nvidia has jumped into the CPU market itself, designing a chip using technology from Arm Holdings to develop its own "Grace" CPU. On Monday, Qualcomm said it would return to the data center CPU market. In the 2010s, Qualcomm began developing an Arm-based CPU that it tested with Meta Platforms, but curtailed those efforts amid cost cuts and legal challenges. But after acquiring a team of ex-Apple chip designers in 2021, Qualcomm has quietly revived those efforts, again holding discussions with Meta about a data center CPU. Qualcomm last week confirmed that it has a letter of understanding with Saudi Arabian AI firm Humain to develop a custom data center CPU. On Monday, Qualcomm said that its future chips would use technology from Nvidia that will help them communicate quickly with Nvidia's graphics processors (GPUs), which are the mainstay of its AI chip portfolio. "With the ability to connect our custom processors to Nvidia's rack-scale architecture, we're advancing a shared vision of high-performance energy-efficient computing to the data center," Cristiano Amon said on Monday.

Qualcomm Plans Ambitious Return To Data Center CPU Market In Alliance With Nvidia's Technology - Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD)

Qualcomm Inc. QCOM revealed its intentions to manufacture custom data center CPUs, utilizing technology from Nvidia Corporation NVDA for connection to Nvidia's AI chips. What Happened: Qualcomm's future chips will incorporate Nvidia's technology, facilitating rapid communication with Nvidia's graphics processors (GPUs), a vital part of its AI chip portfolio. This development signifies Qualcomm's re-entry into the data center CPU market, a space typically ruled by Intel INTC and Advanced Micro Devices AMD, said the company on Monday at a presentation at Computex in Taipei, Taiwan, reported Reuters. Previously, Qualcomm had begun developing an Arm-based ARM CPU in partnership with Meta Platforms META, but had to stop due to cost reductions and legal obstacles. However, after bringing on board a team of former Apple AAPL chip designers in 2021, Qualcomm has quietly revived its efforts and is once again in talks with Meta regarding a data center CPU. Qualcomm recently confirmed a partnership with Saudi AI firm Humain to develop a custom data center CPU. "With the ability to connect our custom processors to Nvidia's rack-scale architecture, we're advancing a shared vision of high-performance energy-efficient computing to the data center," said CEO Cristiano Amon. SEE ALSO: Arthur Hayes Forecasts Bitcoin Will Hit $200,000 In Next Bull Run, Anticipates Revival Of Fortunes For This 'Hated' Coin - Benzinga Why It Matters: This move comes as part of Qualcomm's broader strategy to diversify its revenue streams. Qualcomm aims to generate $22 billion in non-handset revenue by 2029, with AI being a key driver. The collaboration with Nvidia and the development of custom data center CPUs align with this goal. Get StartedEarn 7.2% -- No Matter What the Fed Does Markets expect rate cuts -- but your earnings don't have to suffer. Lock in 7.2% until 2028 from ten individual bonds. Get Started Moreover, association with Nvidia's infrastructure is crucial for any company aiming to break into the data center market, given the central role the Jensen Huang-led company's semiconductors play in AI. Despite delivering Q2 results that surpassed Wall Street predictions, Qualcomm's shares have dipped 4.6% over the past week. The company's foray into the data center CPU market could potentially bolster its performance in the stock market. Qualcomm holds a momentum rating of 28.77% and a growth rating of 59.61%, according to Benzinga's Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock's historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance. Over the past month, the shares of Qualcomm Inc. surged 12.02%. READ MORE: Jim Cramer Recalls 2011's 6.7% Market Decline After US Debt Downgrade, Says It 'Ultimately Meant Nothing:' Dan Niles Sees Limited Downside Amid Tariff Rollbacks, FOMO Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AAPLApple Inc$208.07-1.51%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum57.06Growth45.98Quality76.09Value8.06Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$114.45-2.32%ARMARM Holdings PLC$130.80-3.80%INTCIntel Corp$21.47-0.88%METAMeta Platforms Inc$628.90-1.79%NVDANVIDIA Corp$131.61-2.80%QCOMQualcomm Inc$150.66-1.21%Market News and Data brought to you by Benzinga APIs

Qualcomm Re-Enters Data Center CPU Market, Taps Nvidia Tech To Power AI Ambitions - Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD)

Editor's Note: This story has been updated to include additional input from Qualcomm. Qualcomm Inc. QCOM revealed its intentions to manufacture custom data center CPUs, potentially facilitating communication with Nvidia's NVDA graphics processors (GPUs), a vital part of its AI chip portfolio. What Happened: Qualcomm's future chips will incorporate Nvidia's technology, facilitating rapid communication with Nvidia's graphics processors (GPUs), a vital part of its AI chip portfolio. This development signifies Qualcomm's re-entry into the data center CPU market, a space typically ruled by Intel INTC and Advanced Micro Devices AMD, said the company on Monday at a presentation at Computex in Taipei, Taiwan, reported Reuters. Previously, Qualcomm had begun developing an Arm-based ARM CPU in partnership with Meta Platforms META, but had to stop due to cost reductions and legal obstacles. However, after bringing on board a team of former Apple AAPL chip designers in 2021, Qualcomm has quietly revived its efforts and is once again in talks with Meta regarding a data center CPU, according to Reuters. Qualcomm, in a statement to Benzinga, refuted talks regarding the data center CPU. Qualcomm recently confirmed a partnership with Saudi AI firm Humain to develop a custom data center CPU. "With the ability to connect our custom processors to Nvidia's rack-scale architecture, we're advancing a shared vision of high-performance energy-efficient computing to the data center," said CEO Cristiano Amon. SEE ALSO: Arthur Hayes Forecasts Bitcoin Will Hit $200,000 In Next Bull Run, Anticipates Revival Of Fortunes For This 'Hated' Coin - Benzinga Why It Matters: This move comes as part of Qualcomm's broader strategy to diversify its revenue streams. Qualcomm aims to generate $22 billion in non-handset revenue by 2029, with AI being a key driver. The collaboration with Nvidia and the development of custom data center CPUs align with this goal. Get StartedEarn 7.2% -- No Matter What the Fed Does Markets expect rate cuts -- but your earnings don't have to suffer. Lock in 7.2% until 2028 from ten individual bonds. Get Started Moreover, association with Nvidia's infrastructure is crucial for any company aiming to break into the data center market, given the central role the Jensen Huang-led company's semiconductors play in AI. Despite delivering Q2 results that surpassed Wall Street predictions, Qualcomm's shares have dipped 4.6% over the past week. The company's foray into the data center CPU market could potentially bolster its performance in the stock market. Qualcomm holds a momentum rating of 28.77% and a growth rating of 59.61%, according to Benzinga's Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock's historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance. Over the past month, the shares of Qualcomm Inc. surged 12.02%. READ MORE: Jim Cramer Recalls 2011's 6.7% Market Decline After US Debt Downgrade, Says It 'Ultimately Meant Nothing:' Dan Niles Sees Limited Downside Amid Tariff Rollbacks, FOMO Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AAPLApple Inc$204.93-3.00%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum57.06Growth45.98Quality76.09Value8.06Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$115.42-1.50%ARMARM Holdings PLC$131.87-3.01%INTCIntel Corp$21.31-1.64%METAMeta Platforms Inc$637.98-0.37%NVDANVIDIA Corp$134.59-0.60%QCOMQualcomm Inc$151.26-0.81%Market News and Data brought to you by Benzinga APIs

Qualcomm's Plan To Sell Server CPUs Includes A Partnership With Nvidia

Cristiano Amon, Qualcomm's CEO and president, makes official the company's plan to design and sell server CPUs again. The move includes a partnership with Nvidia that will allow the two companies to integrate their chips into new AI computing systems. Qualcomm has made official its plan to design and sell server CPUs again, and the move includes a partnership with Nvidia that will allow the two companies to integrate their chips into new AI computing systems. Cristiano Amon, Qualcomm's CEO and president, made the announcement during his Monday keynote at the Computex 2025 event in Taiwan after the San Diego, Calif.-based company confirmed its intentions to enter the data center market in a legal filing last year. [Related: Qualcomm: Snapdragon X Partner Program Is 'Hyper Competitive' Against Intel, AMD] "And I just want to tell you, we are expanding into the data center. I won't give you all the details right now. Soon you'll hear from us about the products," he said in his keynote. Amon noted a Monday announcement by Nvidia for a new silicon offering called NVLink Fusion that will allow Qualcomm to integrate custom CPUs with Nvidia's GPUs to "build high-performance Nvidia AI factories." Nvidia pitched NVLink Fusion, which will also allow semiconductor firms to pair custom accelerator chips with Nvidia CPUs, as a way to build semi-custom, rack-scale AI infrastructure with hyperscalers who are increasingly focused on diversifying the chips they use. "We have some very interesting IP on CPU, especially a CPU change for the age of AI, and it's really an AI-centric data center. You saw the great announcement from Nvidia today," Amon said. "[The] CPU becomes very important, but also [in terms of] how we think about clusters of inference that is about high performance and very low power." Amon said Qualcomm decided to re-enter the data center market for a similar reason it decided to make a revitalized push in the PC market with its Snapdragon X Series chips, which debuted in PCs with Microsoft's Copilot+ PC branding last year. "PC was [an] already established market with established players, but if we had something unique and disruptive, there's room for Qualcomm," he said. With Qualcomm planning to introduce CPUs for data centers, the company is set to re-join a market that includes Intel and AMD as well as newer entrants, namely Ampere Computing and Nvidia. The latter company has seen a "surge" of its Grace CPUs shipped as part of Nvidia's Grace Blackwell GB200 Superchips, according to Mercury Research. Mario Morales, a group vice president at analyst firm IDC, said he believes "the data center market is large enough for a new entrant." "Over the coming five years, the data center will be the fastest growing segment for the semi market as a whole and in the last three years, we've seen the tremendous growth from Nvidia, but companies like Qualcomm have not benefited from that growth because they haven't had a position in the space," he wrote in a statement. While Amon didn't provide any further details about Qualcomm's server CPU plans, the company said in a legal filing last year that it intended to continue the development of a server CPU and system-on-chip from technology it gained from its 2021 acquisition of chip design startup Nuvia. The Snapdragon X Series chips were the first Qualcomm product line to use custom, Arm-compatible CPU cores initially developed by Nuvia. The legal filing mentioning Qualcomm's server CPU plans was a complaint the company filed in April of 2024 against Arm, the British chip design licensor that sued Qualcomm and Nuvia in 2023 for allegedly breaching its licensing terms by continuing development of Nuvia's CPU cores under Qualcomm after the acquisition closed. The lawsuit ended in a mistrial in late December because a federal U.S. jury sided with Qualcomm on two key issues but deadlocked on a third. Arm, which sought the halting of sales and destruction of products based on the Nuvia CPU cores, plans to seek a retrial. In January, Qualcomm hired Sailesh Kottapalli, a 28-year Intel veteran who was most recently a senior fellow and chief architect for the company's Xeon processors, as a senior vice president, according to a LinkedIn update by Kottapalli. In a job posting from last December, the company disclosed that its data center team is developing a "high-performance, energy-efficient server solution." Qualcomm previously attempted to enter the server CPU market several years ago, but it stepped back from those efforts in 2018, which resulted in layoffs.

Qualcomm says it will build custom data center CPUs that link with Nvidia chips By Investing.com

Investing.com -- Qualcomm (NASDAQ:QCOM) announced Monday it will develop custom data center CPUs designed to link with Nvidia's AI chips, marking a renewed push into the server processor market. While Nvidia (NASDAQ:NVDA) dominates the AI accelerator space, its chips require CPUs -- traditionally supplied by Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD). Nvidia has also entered the CPU market with its Arm-based "Grace" chip. Now, Qualcomm is rejoining the race, leveraging Nvidia technology to improve communication between its CPUs and Nvidia GPUs. "With the ability to connect our custom processors to Nvidia's rack-scale architecture, we're advancing a shared vision of high-performance energy-efficient computing to the data center," Qualcomm CEO Cristiano Amon said Monday. Qualcomm initially pursued an Arm-based server chip in the 2010s and tested it with Meta Platforms (NASDAQ:META), but scaled back the effort amid legal pressures and cost cuts. The initiative was revived following Qualcomm's 2021 acquisition of a team of former Apple (NASDAQ:AAPL) chip engineers. Since then, the company has resumed discussions with Meta and signed a letter of understanding with Saudi AI firm Humain to co-develop a custom data center CPU. Qualcomm's push into data center CPUs gained momentum with its 2021 acquisition of Nuvia, a company that develops Arm-based processor designs and plays a central role in Qualcomm's renewed server chip ambitions. The data center CPU space is fiercely competitive, with major cloud providers like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) already deploying their own custom-built processors, alongside established industry giants AMD and Intel. Qualcomm's expansion into this segment is part of a broader effort to reduce its reliance on smartphones, where it has long dominated with processors and modems. The company is promoting its chips as energy-efficient and capable of running AI workloads directly on devices, rather than offloading them to the cloud. This on-device approach could enable faster AI performance and improved privacy, as sensitive data remains local to the hardware.