Key Highlights
- Qualcomm is gearing up to launch custom data center CPUs that will connect directly to Nvidia GPUs
- This move marks Qualcomm’s return to the competitive server processor market
- The company is looking to branch out beyond smartphone chips with its focus on data centers
- Additionally, new AI inference accelerators are in the works for the server market
Qualcomm’s Data Center Strategy Takes Shape
Qualcomm has revealed plans to roll out custom central processing units (CPUs) specifically tailored for data centers, featuring a standout capability: seamless connectivity with Nvidia’s top-notch graphics processing units (GPUs).
This initiative signifies Qualcomm’s latest effort to carve out a space for itself in the lucrative data center processor market, which is currently dominated by Intel and AMD. The company had previously attempted to enter this arena last decade but faced limited success.
Partnership With Nvidia Critical
Nvidia’s GPUs have become vital components in AI data centers, playing a key role in training large language models that power applications like ChatGPT. Typically, these GPUs are paired with CPUs from Intel or AMD.
“Being compatible with Nvidia’s infrastructure is absolutely essential for any company looking to compete in the AI data center arena,” noted industry analyst Mario Morales from IDC. “This partnership could provide Qualcomm with the foothold it needs.”
Building on Nuvia Acquisition
Qualcomm’s data center ambitions are built on its 2021 acquisition of Nuvia, a company that specializes in designing processors based on Arm architecture. The technology from Nuvia has been pivotal in the development of Qualcomm’s data center CPUs.
“We anticipate significant growth in this sector for decades ahead, and we possess technology that can deliver real value,” Qualcomm CEO Cristiano Amon shared with CNBC. “We have a truly disruptive CPU.”
The Competitive Landscape
The data center CPU market is buzzing with competition:
- Big players like Amazon and Microsoft are crafting their own custom chips
- AMD and Intel are holding strong in their positions
- Energy efficiency is becoming a crucial factor that sets companies apart
Amon is optimistic: “As long as we can create an outstanding product and drive innovation, there’s definitely space for Qualcomm in this vast, expanding market.”
Broader Diversification Strategy
Qualcomm’s push into data centers is part of a bigger plan to lessen its dependence on smartphone chips, especially since:
- Key client Apple is working on its own modems
- Other manufacturers are looking into custom processors
- There’s promising growth in PC and automotive chips
What’s Next
Qualcomm has some exciting plans ahead:
- They’ll be sharing the full details of their CPU roadmap soon
- They’re set to launch new AI inference accelerators tailored for data centers
- A new PC chip will be unveiled at their September summit
- Recently signed a memorandum of understanding with the Saudi AI firm Humain to collaborate on developing data centers in the region
