February 4, 2016 11:44am
In the world of computer processors, there are only a few large companies working on mobile and consumer CPUs, with Intel essentially holding a monopoly on server chips. Given the abundance of growth in server infrastructure in recent years, stemming from tech giants like Google and Amazon, it’s no surprise Qualcomm has ambitions to move into Intel’s server territory.
A report from Bloomberg this week speculates Qualcomm’s server business is set to get a signifiant boost to its fledgling server chip business from none other than Google. The Mountain View-based giant, which was briefly the most valuable company in the world this week, runs one of the biggest server networks in the world and has worked with Qualcomm on chip design in the past. Sources indicate these commitments from Google are contingent on performance benchmarks hit by Qualcomm’s processors.
Google has a vested interest in competition with Intel and the tech giant’s smaller rivals in the server market, as the company has tripled spending on Internet infrastructure equipment over the last five years. For Qualcomm, this move is a response to shrinking profits and increased competition in the mobile processor industry.
Since Google is currently considered the third largest customer of Intel processors behind HP and Dell, this move represents a notable shift in focus for Qualcomm if the company is able to pull it off.
Photo credit: Maurizio Pesce