Qualcomm Launches AI Data Center Chips to Target the Inference Market

The AI chip market landscape is shifting as Qualcomm, the global leader in mobile processors, makes a strategic move into the AI data center chips sector. Aiming to challenge established giants, Qualcomm has unveiled high-performance solutions designed to dominate the rapidly growing AI inference market.

Information adapted from: "Qualcomm unveils AI data centre chips to crack the Inference market"

Next-Gen Hardware: AI200 and AI250

On October 28, 2025, Qualcomm introduced the AI200 and AI250 solutions. These rack-scale systems are specifically engineered for AI inference workloads, signaling a pivot from mobile-centric growth to infrastructure dominance. Following the announcement, Qualcomm's stock surged approximately 11%, reflecting investor confidence in this new trajectory.

• AI200 (Expected 2026): A pragmatic entry featuring 768 GB of LPDDR memory per card, designed to handle massive large language models (LLMs) at a lower total cost of ownership (TCO).
• AI250 (Expected 2027): A revolutionary near-memory computing architecture promising over 10x higher effective memory bandwidth to eliminate performance bottlenecks.

Market Strategy and Economics

In the competitive AI arena, Qualcomm is focusing on economic efficiency rather than just raw speed. Each server rack is designed with 160 kW power consumption and utilizes direct liquid cooling to manage thermal output efficiently.

Key technical features include:

The $2 Billion Saudi Partnership

Validation for Qualcomm’s roadmap comes via a major deal with Humain, a Saudi state-backed AI powerhouse. The company has committed to a 200-megawatt deployment of Qualcomm AI chips, a move estimated to generate roughly $2 billion in revenue. While Nvidia and AMD currently hold the lion's share of the market, analysts suggest the "rising tide" of AI demand provides ample space for Qualcomm to establish itself as a primary alternative.

Software and Developer Ecosystem

To ensure rapid adoption, Qualcomm is streamlining the developer experience through the Qualcomm AI Inference Suite and Efficient Transformers Library. By supporting major machine learning frameworks, the company aims to reduce the friction of migrating workloads from existing providers to their high-efficiency silicon.

Key Takeaway: Qualcomm is no longer just a "smartphone chip company." With a focus on inference optimization and cost-effective scaling, it is positioning itself as a critical player in the global AI infrastructure landscape.