Qualcomm has announced its intention to acquire Alphawave Semi for $2.4 billion. This strategic move aims to strengthen Qualcomm’s presence in the data center chip market, a space it is determined to conquer. The acquisition complements Qualcomm’s existing CPU and Neural Processing Unit (NPU) products, broadening its capacity to deliver high-performance, low-power computing solutions.
In recent developments, Qualcomm has been actively re-entering the custom CPU market for data centers. A notable part of this strategy involves integrating these CPUs with Nvidia solutions. Also, Qualcomm has partnered with Humain, a Saudi AI firm, to advance data center and chip infrastructure.
Qualcomm’s CEO, Cristiano Amon, shared Qualcomm’s data center ambitions at the Computex conference. Amon highlighted that Qualcomm’s entry into this market mirrors its previous ventures into the PC sector, driven by unique and disruptive offerings. This acquisition signals a diversification strategy that Qualcomm believes holds significant promise.
The purchase of Alphawave Semi signals renewed vigor in Qualcomm’s efforts, following its launch of Centriq processors in 2017. The earlier acquisition of Nuvia, albeit shadowed by legal complications with Arm over licensing, underscored Qualcomm’s resolve to redefine computing in the 5G era. The legal battles hinted at potential challenges that might also arise with the Alphawave acquisition, given the latter’s strong ties with Arm.
Alphawave Semi brings extensive experience in high-speed connectivity and computing technologies. These strengths align well with Qualcomm’s CPU and NPU cores, promising to expand their reach in AI computing and connectivity solutions. According to Cristiano Amon, this cooperation could elevate Qualcomm’s capabilities across fast-growing sectors, including data center infrastructure.
Industry expert Sravan Kundojalla commented on Qualcomm’s re-emergence in the server CPU market. While immediate revenue gains remain elusive, the acquisition positions Qualcomm to leverage the surge in AI demand over the next few years. With Alphawave’s well-regarded networking IP, Qualcomm could establish a robust AI strategy with feasible industry support.