Qualcomm Data Center Chips to Work with NVIDIA AI Technology

Qualcomm has announced a major move into the data center CPU market by launching custom chips that will work directly with NVIDIA’s GPUs and software. According to CNBC, these Qualcomm data center chips are designed to power artificial intelligence systems and offer compatibility with the AI infrastructure.

The launch marks Qualcomm’s renewed and strategic entry into a market already dominated by tech giants like Intel, AMD, Amazon, and Microsoft. Instead of starting from scratch, Qualcomm plans to apply its strengths in mobile and automotive chip technology to build fast, power-efficient chips for cloud computing. Collaborating with NVIDIA gives Qualcomm a competitive edge in AI hardware.

Qualcomm’s Strategic Re-entry into Data Centers

Qualcomm had previously tried to enter the data center market but had little success. This time, however, the company is more prepared. In 2021, Qualcomm bought Nuvia, a startup that designs processors based on Arm architecture. This acquisition gives Qualcomm strong technical support to build its processors for data centers.

According to CEO Cristiano Amon, “We have some technology that can add real value.” He believes that with the right product and innovation, Qualcomm can find a solid place in the highly competitive market. The company is aiming to create cloud chips that are power-efficient and well-suited for AI tasks.

This diversification also reduces Qualcomm’s dependence on smartphones. Apple, one of Qualcomm’s biggest customers, is now developing its own modems. So, moving into cloud and AI infrastructure is an important part of Qualcomm’s long-term growth plan.

Strengthening AI Capabilities Through NVIDIA Collaboration

Qualcomm’s latest announcement came at Computex 2025 in Taipei, where CEO Cristiano Amon said that the company will reveal the chip’s full roadmap and release date soon. The CEO also called the upcoming CPU “very disruptive” and said it will offer real value in the growing AI computing market.

Their ability to pair with NVIDIA’s GPUs and software is one of the greatest things about Qualcomm’s new chips. Almost all today’s leading AI data centers rely on the powerful AI chips produced by NVIDIA. Having a CPU that does well with NVIDIA’s GPUs is vital, since GPU processing is generally needed to handle calls for AI training.

Qualcomm is now supporting NVIDIA with a new system called NVLink-C2C. Due to this, Qualcomm’s CPUs are able to communicate with NVIDIA’s GPUs very rapidly. As a result, CPUs and GPUs can work cooperatively, increasing the performance of AI in data centers.

As a result of its agreement with NVIDIA, Qualcomm joins others developing the future of AI infrastructure. As a result of their partnership, Qualcomm can use NVIDIA’s superior AI technology in the cloud and enterprise industries.

Positioning for Long-Term Growth in AI and Cloud

Qualcomm’s involvement in data center CPUs is focused on increasing the variety of its functions. Intel has started working with the car computer and PC chip industries and now it has set its sights on the rise of AI cloud computing. This is happening as traditional revenue methods are not as stable as before.

To support this expansion, Qualcomm signed a deal last week with Humain, a Saudi AI firm backed by the country’s Public Investment Fund. They plan to work together on building AI-powered data centers. This global partnership shows Qualcomm’s serious intent to become a leader in this space.

Experts say the timing is right. “Over the next five years, the data center will be the fastest-growing segment for semiconductors,” said Mario Morales of the International Data Corporation. He added, “Qualcomm hasn’t benefited from this boom yet, but this announcement could change that.” As AI and cloud computing continue to grow, Qualcomm sees this as a long-term opportunity to compete with the biggest names in the tech world.