Qualcomm enters AI data center market with new accelerator chips, challenging Nvidia
Qualcomm announced new AI accelerator chips (AI200, AI250) for data centers, challenging Nvidia and AMD, causing its stock to soar 11%.
October 27, 2025 - 08:40 PM ET • 2 min read
Qualcomm Inc., the leading manufacturer of mobile phone processors, announced Monday its entry into the lucrative artificial intelligence (AI) data center market with a new line of accelerator chips designed to challenge the dominance of Nvidia Corp.
The announcement of the new chips, which represent a significant strategic shift for the company, caused Qualcomm's stock to soar 11%. Historically, Qualcomm has focused its semiconductor production on wireless connectivity and mobile devices, rather than the massive computing needs of data centers.
The company introduced two new models: the AI200 and the AI250. The AI200 model is scheduled to begin shipping in 2026, while the more advanced AI250 is planned for release in 2027, the company reported.
These new data center chips are based on the existing AI components found in Qualcomm's smartphone chips, known as Hexagon neural processing units (NPUs).
Qualcomm stated that the new chips will be offered in multiple configurations to meet varying customer needs. They can be purchased as standalone components, as add-in cards for integration into existing machinery, or as part of a complete server rack system provided by Qualcomm.
By entering the data center segment, Qualcomm is targeting the fastest-growing part of the semiconductor industry, currently dominated by Nvidia and, to a lesser extent, AMD.
To compete effectively, Qualcomm is matching the offerings of its rivals by providing full-rack systems. These systems are designed to be liquid-cooled and allow for the integration of up to 72 chips that function collectively as a single computer. This level of computing power is essential for AI laboratories running the most advanced and complex models.
Qualcomm executives noted that the company first sought to prove its technology in other domains before moving into the high-stakes data center environment.
The company has already secured its first major client for the new technology. Humain, an AI startup based in Saudi Arabia, plans to deploy 200 megawatts of computing capacity based on the new Qualcomm chips. This deployment is scheduled to begin in 2026, coinciding with the initial shipments of the AI200 model.