Qualcomm is turning parts from cellphone chips into AI chips to rival Nvidia

Qualcomm is launching a pair of new AI chips in an attempt to challenge Nvidia’s dominance in the market. On Monday, Qualcomm announced plans to release its new AI200 chip next year, followed by the AI250 in 2027 — both of which are built on the company’s mobile neural processing technology.

The new chips are built for deploying AI models, rather than training them. The launch marks a notable change for Qualcomm, which has primarily made processors for mobile phones, laptops, tablets, and telecommunications equipment.

As reported by CNBC, Qualcomm’s AI-focused processors are based on the company’s Hexagon neural processing units that power AI features in its chips for mobile devices and laptops. CNBC reports that Qualcomm’s AI processors can work inside a rack with up to 72 chips functioning as a single computer, similar to Nvidia and AMD’s GPUs.

Qualcomm’s A1200 chip features 768GB of RAM, along with performance optimized for AI inference. Meanwhile, the A1250 will come with “a generational leap in efficiency” that the company claims will allow for “much lower power consumption.” Humain, the AI company that exists under Saudi Arabia’s Public Investment Fund, has already announced plans to use the AI200 and AI250 to power computing systems, building on a partnership to develop AI datacenters across Saudi Arabia.