Qualcomm is set to re-enter the data center CPU market by developing custom processors that will seamlessly integrate with Nvidia’s AI chips. This move aims to provide high-performance, energy-efficient computing solutions for data centers.
Nvidia has long been a leader in the AI chip market, particularly with its GPUs, which typically need to be paired with CPUs. Until recently, Intel and AMD have been the main providers of these CPUs. However, Nvidia expanded its reach by creating its own “Grace” CPU using Arm technology. At the 2025 COMPUTEX trade show, Nvidia unveiled a new initiative called NVLink Fusion, which opens its AI server platform to third-party chips. This will allow customers to use CPUs and AI chips from various vendors, including Qualcomm, within Nvidia’s server systems.
Qualcomm’s decision to enter the data center CPU space is a significant strategic shift. After acquiring a team of former Apple chip designers in 2021, Qualcomm renewed its focus on developing custom processors for data centers. The company has already engaged with Meta Platforms and signed a deal with Saudi AI firm Humain to co-develop a custom CPU for data centers.
Qualcomm’s upcoming processors will work closely with Nvidia’s technology, allowing fast communication with Nvidia’s GPUs. By aligning with Nvidia’s NVLink Fusion, Qualcomm’s chips will integrate smoothly into Nvidia’s open AI server platform. This offers customers flexible and scalable solutions, optimizing performance for AI workloads.
This collaboration reflects a larger trend in the tech industry towards open architectures and greater interoperability. By welcoming third-party chips, Nvidia is creating an ecosystem that encourages innovation and meets the diverse needs of data center operators.
For Qualcomm, this partnership with Nvidia positions the company to better compete in the high-performance computing market. By developing processors that complement Nvidia’s AI chips, Qualcomm aims to capture a share of the growing demand for AI infrastructure, further establishing its presence in the data center sector.
