Qualcomm has announced a new data centre processor called the Dragonfly C1000. The chip targets artificial intelligence agents and aims for high performance with low power consumption. Meta intends to deploy this hardware starting in 2028. The company is also acquiring the software startup Modular for approximately $4 billion. Reuters reports this deal. Modular allows AI applications to run across different chip architectures. Qualcomm previously unveiled two AI accelerator chips for data centres last year. Shares rose 15 percent in after-hours trading following the news. The company nearly doubled its revenue forecast for non-smartphone businesses to $40 billion by 2029. The target for data centres alone is $15 billion.
This expansion moves Qualcomm beyond its traditional mobile focus into a sector dominated by Nvidia and AMD. The acquisition of Modular provides the software layer needed to make these new chips compatible with existing enterprise workflows. The financial targets indicate a serious commitment to this growth area rather than a casual experiment. Success depends on whether the hardware meets the specific efficiency requirements of large-scale AI workloads.
- Meta deployment scheduled for 2028
- Modular acquisition valued at $4 billion
- Non-smartphone revenue target set at $40 billion by 2029
