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Qualcomm Reenters Data Center CPU Market with Saudi Arabia AI Cloud Project

Qualcomm has officially entered the data center CPU market once again, this time through a partnership with Saudi Arabia’s state-backed AI cloud infrastructure project, HUMAIN AI. The collaboration is part of a memorandum of understanding (MoU) signed between Qualcomm and HUMAIN, which is backed by the country's Public Investment Fund (PIF). This marks a significant return to the data center CPU domain for Qualcomm, which previously developed the Centriq series in 2017 before abandoning the project in 2019. In 2021, Qualcomm acquired Nuvia, a startup specializing in Arm-based data center CPUs. While the technology initially seemed destined for Qualcomm’s Snapdragon processors for Windows devices, industry speculation suggested that the company would eventually leverage Nuvia’s expertise for a comeback into data centers. Qualcomm and HUMAIN AI plan to develop cutting-edge AI data centers in Saudi Arabia, focusing on delivering efficient and scalable cloud-to-edge hybrid AI inferencing solutions. These data centers will cater to both local and international clients, offering them access to high-performance, power-efficient CPU and AI cloud infrastructure and services. Qualcomm will contribute by developing and supplying advanced data center CPUs and AI solutions, with an emphasis on utilizing Snapdragon and Dragonwing processors to expedite infrastructure deployment. Cristiano Amon, President and CEO of Qualcomm Incorporated, expressed enthusiasm about the partnership, stating that the company is "pleased to be working with HUMAIN to support the realization" of Saudi Arabia’s goal to become a global leader in AI technology. To further solidify its commitment, Qualcomm will establish a design center in Saudi Arabia focused on semiconductor technology. Qualcomm’s move comes at a strategic time, following the Trump administration’s scrapping of the AI Diffusion Rule, which previously limited the export of AI chips to many countries. This regulatory change opens up new opportunities for companies like Qualcomm to expand their AI offerings internationally. The partnership also aligns with recent developments by other tech giants. Nvidia, for instance, recently announced it will supply 18,000 AI GPUs to Saudi Arabia for the construction of a 500-megawatt data center. Such high-profile projects underscore the growing interest and investment in AI infrastructure, particularly in regions with strong government backing like Saudi Arabia. Earlier this year, Qualcomm bolstered its technical capabilities by hiring Sailesh Kottapalli, the former chief architect of Intel’s Xeon server processors. Kottapalli's extensive experience, encompassing projects ranging from x86 and Itanium to multiple Xeon generations, is expected to play a crucial role in Qualcomm’s new data center initiatives. This partnership not only positions Qualcomm to capitalize on the burgeoning AI market but also highlights Saudi Arabia’s ambitious plans to become a hub for cutting-edge technology and innovation.

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