Qualcomm unveiled its Dragonfly C1000 data center CPU and secured Meta as the first customer under a multi-generation supply agreement, with production slated for H2 2028. The company also agreed to acquire AI software startup Modular in an all-stock deal valued at about $4 billion.
Qualcomm introduced its Dragonfly C1000 CPU at Investor Day 2026, targeting power efficiency and performance per core for large-scale data centers. The company signed a multi-generation supply contract with Meta Platforms, with production set to commence in the second half of 2028.
To bolster its software stack, Qualcomm agreed to buy AI startup Modular in an all-stock transaction worth approximately $4 billion (19.2 million shares). Modular’s platform enables AI models to run across diverse hardware, positioning Qualcomm against Nvidia’s CUDA ecosystem.
With smartphones accounting for about two-thirds of recent revenue and industry shipments contracting, Qualcomm is aggressively diversifying into data center infrastructure. The Dragonfly portfolio, including AI accelerators, represents a key inflection point over the next three to five years.
