The AI chip landscape has witnessed a significant shift with Qualcomm’s foray into the market, posing a substantial challenge to Nvidia’s long-standing dominance. This move reflects broader industry trends, where companies are diversifying their product portfolios to capitalize on the growing demand for AI infrastructure. Qualcomm’s AI200 and AI250 solutions, launched on October 28, 2025, are designed to redefine rack-scale data centre capabilities, with a focus on AI inference workloads.
Qualcomm’s strategy is noteworthy, as it is introducing two distinct AI data centre chip architectures, each targeting different market needs and timelines. The AI200, slated for release in 2026, boasts 768 GB of LPDDR memory per card, making it an attractive option for running large language models and multimodal AI applications. In contrast, the AI250, expected in 2027, features a near-memory computing architecture that promises to deliver over 10x higher effective memory bandwidth, potentially revolutionizing the field.
The real battle in the AI infrastructure space is not just about performance, but also about economics. Qualcomm’s emphasis on total cost of ownership (TCO) is a key differentiator, as data centre operators are increasingly concerned about power bills, cooling costs, and hardware depreciation. The company’s partnership with Humain, a Saudi state-backed AI company, is a significant validation of its technology, with a commitment to deploy 200 megawatts of Qualcomm AI data centre chips, translating to approximately $2 billion in revenue.
As Qualcomm navigates the competitive AI chip market, it is playing the long game, betting on sustained innovation to gradually win over customers. The company’s focus on inference optimization, energy efficiency, and TCO presents an attractive alternative to the Nvidia-AMD duopoly. With the AI market expanding rapidly, analysts believe that there is room for multiple winners, even for latecomers like Qualcomm with compelling technology and competitive pricing.
Source: Official Link