Qualcomm has officially entered the AI data center market. They revealed a new platform called Dragonfly. Qualcomm also has a big plan. They aim to make over $15 billion. This is from the AI sector by fiscal year 2029.
The announcement happened at Investor Day 2026 in New York. Qualcomm also shared that they bought an AI company. The company is called Modular. The deal cost $3.92 billion. They also made partnerships with Microsoft Azure and Meta.
From Smartphones to Data Centers
Qualcomm is known for making chips for smartphones. Billions of phones use their processors. Now, they want to grow in the data center market. This is because AI applications and AI agents are growing fast.
These systems need to do many steps. This is called inference. Data centers face challenges. They need more processing power. They also need to manage energy use. Moving data between processors and memory must be fast. This report comes from androidheadlines.
Dragonfly Roadmap
To solve these problems, Qualcomm has a new design. It is called High-Bandwidth Compute (HBC). It aims to close the gap between processors and memory. This will make performance better. It will also use less energy.
The company shared its plan. The platform will launch in stages. First, they will release connection chips. Then, the Dragonfly AI300 inference accelerator in 2027. Finally, the main server processor, Dragonfly C1000 CPU, will launch in 2028.
Acquisition to Boost Software
Qualcomm is not just making hardware. They also bought a startup. Modular is the company's name. The deal was for $3.92 billion in stock. Modular makes software tools.
These tools help AI models run on different chips. Apps do not need rewriting. This gives Qualcomm a strong software base. It helps them compete with big companies.
Support from Microsoft and Meta
Qualcomm has early support. Two big tech companies are helping. Microsoft CEO Satya Nadella said Azure uses the new HBC design. He said it will improve performance. It will also lower costs for future data centers.
Meta CEO Mark Zuckerberg said Meta plans to use Dragonfly C1000 chips. This will be when they launch in 2028. He said working with Qualcomm helps build AI infrastructure. It will be more efficient. Qualcomm has long experience in performance and power use.
Direct Competition in AI Market
Qualcomm entering the data center market is a big move. They want to compete with established AI chip makers. The need for AI infrastructure is growing fast.
The company is focusing on energy efficiency. They are linking hardware and software. They are also partnering with cloud providers. This will help them get a strong place. It is in one of the fastest growing tech areas.