Qualcomm (QCOM, Financial), a leader in smartphone processors, has announced a strategic partnership with Saudi Arabia's new AI company, Humain, to develop AI chips for data centers. The collaboration aims to establish cutting-edge AI data centers in Saudi Arabia, leveraging Qualcomm's edge and data center solutions to offer scalable cloud-to-edge AI inference solutions for local and international clients.
The partnership will also involve the Saudi Ministry of Communications and Information Technology to set up a Qualcomm semiconductor design center in the region. Notably, Humain has also partnered with competitors NVIDIA and AMD for its AI data center operations.
Qualcomm's venture into AI chips is not new; in 2019, it launched the AI 100 data center chip, initially targeting Meta as a key client. Despite Meta's positive performance tests, concerns about the accompanying software's maturity led to the partnership's dissolution. NVIDIA's dominance in AI chips is largely due to its robust software support, including the CUDA platform, which offers a comprehensive ecosystem for AI model development and deployment.
Despite setbacks, Qualcomm's AI 100 has found applications, such as in Industrial Internet's servers for traffic and security monitoring, showcasing its potential in real-world scenarios. The AI chip market is projected to reach $119.4 billion by 2027, suggesting significant opportunities and competition ahead.
