Qualcomm Unveils New AI Chips For Data Centres
Qualcomm has announced two new artificial intelligence chips, the AI200 and AI250, as part of its push into the data-centre market. The launch marks a strategic shift for the company, which has traditionally been focused on smartphone processors. The news sent Qualcomm’s shares soaring by nearly 20% on October 27.
Features Of The New Chips
The AI200 and AI250 are designed with larger memory capacity and compatibility with major AI frameworks. They are expected to power model inference and cloud-based AI operations. Alongside the chips, Qualcomm introduced server-rack solutions, positioning itself to compete with Nvidia and AMD in the high-demand AI server space.
Strategic Importance
The company highlighted a significant contract in Saudi Arabia, where a firm will deploy 200 megawatts of Qualcomm’s AI racks from 2026. Analysts see this as an early sign of commercial traction for Qualcomm’s new line.
Market Challenges Ahead
While the launch strengthens Qualcomm’s diversification strategy, challenges remain. Nvidia continues to dominate the AI hardware market, and large-scale adoption requires software ecosystem integration and industry confidence in performance benchmarks. The next two years will be critical for Qualcomm to secure market share.
