Qualcomm Aims $2–5B AI Chip Revenue as CoreWeave Scales Nvidia Cloud
NVDA•Qualcomm plans to ship data center AI processors and inference accelerators by year-end, forecasting $2–5 billion in annual revenue by fiscal 2027–28 and striking a $3.9 billion all-stock deal for AI software startup Modular. Cloud provider CoreWeave has added two Nvidia Blackwell-based centers in Sweden, bringing its European footprint to eight sites.
1. Qualcomm’s Data Center Chip Push
Qualcomm is moving beyond smartphone processors to ship AI CPUs, inference accelerators and custom ASICs for data centers by year-end. Analysts project $2 billion to $5 billion in annual revenue from this segment by fiscal 2027–28 as the company seeks to erode Nvidia’s dominant position in AI infrastructure.
2. Modular Acquisition Strengthens AI Software
In June, Qualcomm agreed to acquire AI software startup Modular in an all-stock deal valued at $3.9 billion, issuing 19.2 million new shares. The transaction integrates Modular’s platform designed to optimize AI workloads across diverse hardware, positioning Qualcomm against Nvidia’s entrenched CUDA ecosystem.
3. CoreWeave Expands Nvidia-Powered Footprint
CoreWeave partnered with Swedish green data center operator Conapto to bring two new campuses online, both running Nvidia Blackwell architecture connected via Quantum-X800 InfiniBand. This deal boosts CoreWeave’s European AI cloud sites to eight, catering to labs, enterprises and developers seeking high-performance Nvidia infrastructure.
4. Competitive Implications for Nvidia
Qualcomm’s chip entry and Modular deal heighten pressure on Nvidia’s AI market share, while CoreWeave’s expanded Nvidia platform underscores robust demand for Nvidia’s Blackwell GPUs. The combined moves signal both intensified rivalry and sustained enterprise adoption that could influence Nvidia’s growth trajectory.
