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Qualcomm Challenges Nvidia with New AI Data Center Chips
25 Jun
Summary
- Qualcomm announced Microsoft and Meta will use its new AI chips.
- The company is shifting focus to AI data center chips.
- Qualcomm aims to compete with Nvidia in the AI chip market.
Qualcomm is making a strategic move into the AI data center chip market, challenging Nvidia's dominance. The company announced that Microsoft and Meta Platforms will use its new category of "High Bandwidth Compute" (HBC) chips, which utilize cost-effective memory solutions.
This pivot reflects increasing pressure in the smartphone market and major customers like Apple and Samsung developing their own silicon. Qualcomm's new CPU, the Dragonfly C1000, is specifically designed for AI data centers and enters a competitive landscape alongside offerings from Arm Holdings and Nvidia.
Furthermore, Qualcomm has secured two unnamed "hyperscale" customers for custom chip development, with revenue expected to begin before the end of the current calendar year. The company aims to offer competitive performance per cost advantage in this rapidly growing sector.
