Nvidia Faces New Competition as Qualcomm and Ampere Launch AI-Focused Server

Qualcomm Inc QCOM and Ampere Computing, both developers of Arm Holdings Plc ARM-based chips for data center servers, have partnered to launch an AI-focused server. 

This collaboration will utilize Ampere’s CPUs and Qualcomm’s Cloud AI 100 Ultra AI inferencing chips to run AI models, focusing specifically on inference rather than training. 

Ampere’s interest lies in creating fast and power-efficient server chips, whereas Qualcomm enhances the server’s AI capabilities with its efficient inferencing chips, TechCrunch reports.

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Jeff Wittich, Arm CTO, explained that while Ampere CPUs already perform well for AI inferencing, the partnership with Qualcomm allows scaling to larger AI models. 

The collaborative product from Ampere and Qualcomm will not directly challenge Nvidia Corp NVDA, the leader in AI chips that focus on training complex AI systems. Instead, the Ampere-Qualcomm servers will run the AI models after their training phase, Reuters reports. 

Jim McGregor, founder of Tirias Research, explained that both companies also indirectly compete with Nvidia by selling AI chips in systems that combine various types of chips, enhancing their competitive edge in the market. He noted that the partnership aims to prevent competitors from penetrating the data center market.

Additionally, Ampere revealed its upcoming generation of central processing units on Thursday. This generation boasts 256 processing cores, an upgrade from the current 192 cores. These new chips, set to be released next year, are being produced using Taiwan Semiconductor Manufacturing Co’s TSM 3-nanometer process.

Price Action: QCOM shares traded higher by 0.29% at $193.84 premarket at the last check Friday.

Also Read: Arm Holdings Poised To Challenge Qualcomm, Intel, AMD In AI, Analysts Predict Growth In Chip Design

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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