Qualcomm Technologies Inc. has announced its bold entry into the data center AI space with the launch of two new artificial intelligence chips—AI200 and AI250—designed to optimize inference workloads and deliver rack-scale performance. The announcement, made on October 27, 2025, signals Qualcomm’s strategic pivot beyond its traditional smartphone chip business, aiming to compete directly with industry leaders Nvidia and AMD.
The AI200 and AI250 chips are part of Qualcomm’s multi-generation roadmap for data center AI inference. The AI200 is expected to be commercially available in 2026, followed by the AI250 in 2027. Both chips are engineered to support large-scale generative AI applications, offering enhanced memory capacity and energy efficiency. The AI250, in particular, introduces a novel memory architecture that significantly boosts bandwidth and workload efficiency.
These chips are compatible with leading AI frameworks and come with a robust software stack, enabling enterprises to deploy scalable and secure AI solutions across data centers. Qualcomm emphasized that the new offerings deliver industry-leading total cost of ownership (TCO), positioning them as cost-effective alternatives for cloud providers and enterprise clients.
Investor response to the announcement was overwhelmingly positive, with Qualcomm’s stock surging by up to 20%—its largest single-day gain in over six months. Analysts attribute the rally to growing confidence in Qualcomm’s AI strategy and its potential to disrupt the current market dynamics dominated by Nvidia.
The launch also coincides with a broader industry trend, as global investment in AI infrastructure accelerates. Major players like Google, Amazon, Microsoft, and OpenAI are also developing proprietary AI accelerators, intensifying competition in the sector.
With the AI200 and AI250, Qualcomm aims to redefine data center inference performance and establish itself as a formidable contender in the next wave of AI-driven computing.
