• Qualcomm expands beyond phones with new data centre AI chips.
• The chips mark its entry into Nvidia’s AI territory.

Qualcomm is making a bigger move into artificial intelligence, introducing two new chips designed for data centres. The announcement, made on Monday, sent its stock up 20%, reflecting strong investor confidence in the company’s growing AI strategy.

The chips — named AI200 and AI250 — aim to handle the demanding workloads of AI applications, including inference tasks used to run large language models and chatbots. The AI200 is expected to be available in 2026, while the AI250 will follow in 2027.

The launch signals Qualcomm’s push to diversify beyond smartphones, a market that has slowed in recent years. The company, known for its modem chips that connect phones to networks, is looking for growth in areas such as personal computers and data centres after losing Huawei as a major customer and facing Apple’s shift toward in-house chip production.

Competing in the AI data centre race

Global spending on AI chips has surged as cloud companies and enterprises race to build systems capable of running advanced AI models. Nvidia currently dominates this space, and its performance advantage has made it hard for others to break in. Qualcomm hopes its latest products — which it says are more energy-efficient and cost-effective — can help it gain a foothold.

The AI200 features 768 GB of LPDDR memory per card, while the AI250 uses a near-memory computing setup that delivers over ten times higher effective bandwidth and lower power use. Both models also support liquid cooling and standard PCIe and Ethernet connections.

In addition to the new chips, Qualcomm revealed full rack systems built around them, following a trend among chipmakers like Nvidia and AMD, which are shifting from selling chips to offering complete data centre systems.

Saudi partnership marks first major deployment

As part of the rollout, Qualcomm announced a deal with Humain, a Saudi Arabian AI startup backed by the country’s sovereign wealth fund. Starting in 2026, Humain plans to deploy 200 megawatts of Qualcomm’s new AI racks, helping to establish large-scale AI infrastructure in Saudi Arabia.

“With Qualcomm’s world-class AI infrastructure solutions, we’re shaping the foundation of the Kingdom’s AI future,” said Tareq Amin, CEO of Humain.

Qualcomm’s chief executive, Cristiano Amon, said the partnership supports Saudi Arabia’s goal of becoming a global hub for intelligent computing.

Bernstein analyst Stacy Rasgon estimated the 200-megawatt project could involve around 1,250 racks, each consuming 160 kW. Rasgon noted that while Qualcomm’s AI revenue potential is not yet reflected in forecasts, it could soon start benefiting from rising demand for inference hardware.

He also pointed out that although Qualcomm has sold AI accelerators before — including the AI100 in 2019 — the AI200 and AI250 are its first products to introduce rack-scale designs, marking a step up in ambition.

A broader strategy for growth

The move highlights Qualcomm’s efforts to lessen its dependence on smartphones and compete more directly in high-performance computing. Over the past two years, it has entered the PC market, taking on Intel and AMD with chips for Windows laptops. Now, the company is setting its sights on data centres, committing to an annual update cycle for its AI roadmap focused on efficiency, affordability, and performance.

By expanding into AI infrastructure, Qualcomm joins a growing list of semiconductor companies seeking to capture part of the booming market for generative AI. While it still faces tough competition from Nvidia, the company’s Saudi deal and new product lineup show it is ready to play a larger role in powering the next generation of AI computing.

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