Qualcomm to launch data center CPU in mid-2028 - data center chief
Qualcomm is preparing to enter the data center CPU market with a custom-designed processor that will connect to Nvidia’s GPUs and software, according to recent announcements by the company. This move marks a re-entry into the data center space for Qualcomm, following previous attempts in the 2010s that did not achieve significant market traction. The company acquired Nuvia in 2021, a firm specializing in Arm-based processors, which has since become key component of Qualcomm’s strategy in the data center arena.
The data center CPU is expected to be part of a broader initiative to diversify Qualcomm’s business, which has traditionally been centered on mobile processors and modems. With increasing competition from cloud providers like Amazon and Microsoft, who are developing their own custom CPUs, and with Intel and AMD maintaining strong market positions, Qualcomm’s entry into the space is seen as strategic move to capture share of the growing AI-driven data center market.
Qualcomm’s CEO, Cristiano Amon, emphasized the importance of the data center market, stating that it represents a “new growth opportunity” for the company and a logical extension of its diversification strategy. He highlighted the growing demand for efficient AI inference solutions, particularly in cloud environments, where factors such as tokens per dollar and watt are becoming increasingly important.
The company is also working on AI inference accelerator cards and rack-based data center offerings, with Amon noting that inference is beginning to outpace training in terms of market dynamics. Qualcomm’s proposed products are expected to leverage its existing innovations in 64-bit Arm-based Oryon CPUs.
In addition to its internal development efforts, Qualcomm is in “advanced discussions” with a leading hyperscaler, signaling progress in its data center return. The company has also signed a memorandum of understanding with Saudi Arabia’s AI firm Humain to develop data centers, further expanding its global footprint.
Qualcomm’s data center CPU is expected to begin generating revenue in the fiscal year 2028 timeframe, according to Amon. The company is also pursuing a proposed takeover of Alphawave IP Group, which is expected to close in early 2026 and provide additional design capabilities to support its data center ambitions.
With the data center market projected to be one of the fastest-growing segments in the semiconductor industry, Qualcomm’s entry could position the company to benefit from the ongoing AI-driven expansion. However, the market remains highly competitive, and Qualcomm will need to demonstrate significant innovation and performance to establish a meaningful presence.
