Qualcomm’s Shift Towards AI Infrastructure
Qualcomm has announced two new artificial intelligence chips — AI200 and AI250 — marking a major step beyond its traditional smartphone business, reported Reuters. These chips are designed for data centers and will be available in 2026 and 2027. The company says they’re built to run complex AI models efficiently while offering better memory capacity and lower costs for enterprises.
Betting on data centers
With global demand for AI compute infrastructure soaring, Qualcomm’s entry comes as companies race to support large language models, chatbots, and generative AI tools. The new chips support popular AI frameworks, making them easier for developers and enterprises to integrate.
The company also introduced AI racks powered by these new processors, signaling a move similar to rivals Nvidia and AMD, who now sell complete data center systems rather than just chips.
Competing in a tough market
Despite growing competition, breaking into Nvidia’s dominant position won’t be easy. Nvidia’s processors continue to set the benchmark for AI performance, and switching providers often comes with high costs for cloud providers. Still, Qualcomm’s focus on energy efficiency and affordability may help it carve a niche in the market.
Major deal in Saudi Arabia
In a significant development, Qualcomm announced that Saudi Arabia–based AI startup Humain, backed by the country’s sovereign wealth fund, will deploy 200 megawatts of Qualcomm’s new AI racks starting in 2026.
Industry experts believe this deal signals a broader shift. “Qualcomm’s entry and major deal in Saudi Arabia prove the ecosystem is fragmenting because no single company can meet the global, decentralized need for high-efficiency AI compute,” said Joe Tigay, portfolio manager at the Rational Equity Armor Fund.
Moving beyond smartphones
Qualcomm, best known as the world’s largest supplier of modem chips for smartphones, is accelerating its diversification strategy. The move comes after years of dependence on the mobile market and challenges such as losing Huawei as a major customer and Apple’s push to design its own chips.
By investing in AI hardware for data centers, Qualcomm aims to reduce its reliance on smartphones and expand into new, high-growth markets. The company’s latest announcement shows it’s positioning itself not just as a mobile chipmaker but as a broader technology player in the evolving AI infrastructure race.
The road ahead
As enterprises invest heavily in AI-driven systems, Qualcomm’s focus on efficient and cost-effective data center chips could help balance the field. With the AI200 and AI250 set for rollout in the next two years, the company is clearly betting on a future where AI compute demand shapes its next chapter — beyond the smartphone.
