Quacomm has been hinting at DC opportunity for a while after Nuvia acquisition by saying DC is opportunistic for it. The company first started server CPU effort in 2014 but abandoned the effort in 2018 at the peak of corporate turmoil. Between Nuvia IP-based server CPU, AI 100 inference and potential Alphawave acqusition (ASIC IP), Qualcomm is putting together its DC strategy again.
The server CPU market is not as red hot as the GPU one and surprisingly a crowded one already with merchant and hyperscaler companies fighting for share. Intel's missteps with server CPU roadmap opened the door for competition. If Qualcomm is willing to stay in this for a long time and invest, it may grab some share but misses quite a few pieces to be a dominant one. But, how much Opex the management is willing to invest without results for a long time will also be tested.It will be years before any meaningful revenue will come from this as Qualcomm builds all the pieces including the software stack. But a good step given Qualcomm's expertise in complex CPU designs, advanced nodes and advanced packaging. 50% of new CPUs deployed by hyperscalers this year will be Arm-based, per Arm.Source: Sravan Kundojjala
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