Qualcomm to Launch Data Center CPU in 2028, Secures Hyperscaler Deals with Microsoft and Meta
Qualcomm announced plans to launch its first data center CPU in mid-2028 and secured deals with Microsoft for Azure deployments and Meta as a CPU supplier, as part of its push into AI infrastructure.
At its Investor Day, Qualcomm outlined a major expansion beyond smartphones into AI infrastructure and data center computing. The company plans to launch its first data center CPU, the Dragonfly C1000, in mid-2028, with commercial sampling of its high-bandwidth compute Gen 1 platform (AI250) expected in mid-2027.
Qualcomm has secured two major hyperscaler deals. Microsoft will deploy Qualcomm's high-bandwidth compute chips in Azure data centers, while Meta has selected Qualcomm as a data center CPU supplier under a multi-generation strategic collaboration. The custom silicon business is expected to generate meaningful revenue starting Q1 2027.
In addition to CPUs, Qualcomm launched PAM4 electrical and optical connectivity solutions for data centers and is developing new communications chips with a major hyperscale customer. The automotive business is projected to reach a $6 billion annualized revenue run rate by the end of fiscal 2026.
Source: First Squawk