Qualcomm unveils data center CPU, signs Meta as first customer

Qualcomm on Wednesday introduced a central processing unit for data centers called the Dragonfly C1000 and said Meta would use the chip when production begins in 2028. The company said the processor targets agentic AI workloads and emphasizes performance with lower power consumption. The announcement occurred during an investor presentation.

Expansion plans Qualcomm outlined a product roadmap that includes an AI chip and a component to link multiple chips. The company said it already holds contracts to supply custom silicon to two hyperscalers. Qualcomm also acquired Modular, a startup whose software supports AI applications across different chip designs, for an undisclosed amount.

Background and statements Smartphones accounted for two-thirds of Qualcomm product revenue in the quarter ended in March. The company said its experience with power-efficient chips positions it to serve data centers where electricity supply is a constraint.

"We just been executing, collecting assets, and when we got to this point, we feel that we have a comprehensive portfolio to enter the next phase of the data center," the chief executive said at the investor day. The chief financial officer said existing relationships with hyperscalers through smartphone and edge products support the new data center business.

Shares of the company traded lower on Wednesday.