Cristiano Amon, chief executive at Qualcomm, announced the company’s first data-centre processors for artificial intelligence, seeking to challenge Nvidia’s dominance in a rapidly expanding market. Qualcomm’s shares surged as much as 20 per cent following the launch, adding tens of billions of dollars to its market capitalisation. Saudi Arabia’s Humain will be the first customer, deploying 200 megawatts of the new AI accelerators starting in 2026. This move signals Qualcomm’s diversification beyond smartphone processors and a commitment to annual AI chip launches, mirroring a pattern established by its leading competitor.
Qualcomm Challenges Nvidia with New AI Data Centre Processors
Qualcomm shares surged as much as 20 per cent on Monday following the launch of its first data-centre processors designed for artificial intelligence applications, signalling a direct challenge to Nvidia’s dominance in the rapidly expanding market. According to reports, this move aims to capture a share of a multibillion-dollar market currently led by a single competitor, demonstrating Qualcomm’s ambition in the AI infrastructure space. The company announced Saudi Arabia’s Humain will be its first customer, building on a partnership established in May, indicating a strategic focus on international collaborations.
Humain, an AI company backed by Saudi Arabia’s Public Investment Fund, will integrate Qualcomm’s new processors into its AI infrastructure, marking a significant early adoption of the technology. This collaboration highlights the growing trend of “sovereign AI,” with nations and companies investing in independent AI capabilities. Investors reacted positively to the news, driving Qualcomm’s market capitalisation above $200 billion and resulting in tens of billions of dollars added to the company’s value, according to financial reports.
Building on this momentum, Qualcomm is positioning itself to benefit from the broader AI infrastructure boom, seeking to diversify its product offerings beyond its traditional strength in smartphone processors. Currently, Nvidia holds an estimated three-quarters of the market for specialized processors needed to power large language models like those behind ChatGPT and Gemini. However, recent deals between OpenAI and both AMD and Broadcom suggest a growing effort to narrow that lead, and Qualcomm’s launch represents another key step in this competitive landscape.
Saudi Arabia to Anchor Qualcomm’s AI Infrastructure Expansion
This new partnership with Qualcomm directly anchors Saudi Arabia’s commitment to bolstering its domestic AI capabilities. Humain, backed by the kingdom’s Public Investment Fund, will serve as the initial customer for Qualcomm’s newly launched data centre processors. This strategic move highlights Saudi Arabia’s ambition to become a leader in sovereign AI development and reduce reliance on external technology providers, according to company announcements. The investment signifies a substantial commitment to building a robust AI infrastructure within the region.
The collaboration extends beyond a simple customer-vendor relationship; it represents a broader effort to establish a complete AI ecosystem within Saudi Arabia. Humain plans to integrate Qualcomm’s processors into its AI solutions, focusing on applications tailored to the kingdom’s specific needs. This includes developing AI models across sectors such as healthcare, finance, and public services. Building on this, the partnership aims to accelerate the deployment of AI technologies across various industries, fostering innovation and economic growth within Saudi Arabia.
This initiative aligns with Saudi Arabia’s Vision 2030, a strategic framework focused on diversifying the economy and embracing technological advancements. According to the company, investing in AI infrastructure is critical to achieving these long-term goals. Qualcomm’s technology will enable Humain to build and deploy AI solutions locally, fostering a self-sufficient AI ecosystem. This move not only strengthens Saudi Arabia’s technological independence but also positions the kingdom as a potential hub for AI innovation in the Middle East.
Qualcomm’s entry into the AI data centre processor market, anchored by a significant deal with Saudi Arabia’s Humain, signals a growing challenge to Nvidia’s dominance. This development could enable broader competition and innovation within the rapidly expanding AI infrastructure landscape. For industries reliant on advanced artificial intelligence capabilities, Qualcomm’s processors offer a potential alternative and a means of diversifying supply. Ultimately, this move positions Qualcomm to capitalize on the increasing demand for AI processing power, extending beyond mobile technology and into large-scale data centres.
