Qualcomm is taking a bold step into the AI hardware race. Qualcomm is turning parts from cellphone chips into AI chips to rival Nvidia, signaling a major shift from mobile processors to high-performance AI computing.

The company announced two new processors — the AI200 and AI250 — designed to challenge Nvidia’s dominance in AI chips. Qualcomm says the AI200 will launch in 2026, followed by the AI250 in 2027. Both chips build on the company’s mobile Hexagon neural processing technology, which has powered AI features in smartphones and laptops for years.

From Mobile Power to AI Acceleration

Unlike Nvidia’s GPUs that are primarily used for training large AI models, Qualcomm’s new AI chips are optimized for AI inference — the process of running trained models efficiently. This approach could make AI computing more accessible and energy-efficient for enterprises and data centers.

According to CNBC, Qualcomm’s AI processors can be configured to work inside racks with up to 72 chips acting as one powerful system, much like Nvidia’s and AMD’s GPU clusters. This modular approach could help Qualcomm scale its AI infrastructure rapidly and reduce costs for AI deployment.

The Tech Behind Qualcomm’s AI Chips

At the core of these chips is Qualcomm’s proven Hexagon neural processing unit (NPU) — the same architecture used in its mobile Snapdragon chips. By adapting this technology, Qualcomm can produce AI processors that are both power-efficient and cost-effective compared to Nvidia’s GPU-heavy solutions.

The AI200 chip comes with 768GB of RAM and is optimized for inference performance, while the AI250 promises a “generational leap in efficiency,” cutting power consumption significantly. This could appeal to companies seeking greener, scalable AI infrastructure.

Global Partnerships and Strategic Moves

Qualcomm’s new AI strategy is already drawing interest. Humain, an AI company under Saudi Arabia’s Public Investment Fund (PIF), announced plans to use the AI200 and AI250 chips in its computing systems. The collaboration aims to build advanced AI data centers across Saudi Arabia, aligning with the country’s push to become a regional AI hub.

This partnership marks a pivotal moment for Qualcomm, transitioning from consumer electronics to enterprise-level AI infrastructure, directly challenging Nvidia’s dominance in the AI hardware space.

By leveraging its mobile chip expertise, Qualcomm could reshape the AI hardware landscape. Its focus on energy efficiency, modular scalability, and cost savings offers a compelling alternative for global AI deployments — especially in regions building new AI infrastructure from scratch.

As Qualcomm is turning parts from cellphone chips into AI chips to rival Nvidia, it’s positioning itself not just as a mobile leader, but as a serious player in the next phase of AI computing.