Alphabet Inc. Invests $548 Million in Qualcomm AI Expansion

Alphabet Inc. acquired a stake in Qualcomm worth approximately $548 million during the third quarter. The investment supports Qualcomm's strategic expansion into the data center market as the company seeks to capitalize on the AI infrastructure boom and offset a significant downturn in the smartphone market.

Qualcomm is currently courting cloud service providers with custom AI processors to provide alternatives to Nvidia hardware, targeting $15 billion in data-center chip revenue by 2029. This financial move follows a series of collaborations between the two companies, including the development of the Googlebook laptop line and a 2024 agreement to create AI chips and software for the automotive industry.

Qualcomm has also secured backing from other major technology firms. Microsoft and Meta Platforms Incorporated have supported the data center push with processor orders, while Amazon.com signed a deal in September to purchase up to $60 billion in AI data-center chips and related products.