Qualcomm acquires Alphawave Semi to boost AI data centers

Qualcomm has acquired Alphawave Semi as part of its strategy to expand in AI infrastructure for data centers. The deal positions the company to compete more aggressively in this sector. Alphawave's CEO will lead Qualcomm's data center business following the acquisition.

Qualcomm's acquisition of Alphawave Semi marks a significant step in the company's ambitions to strengthen its presence in AI-driven data center technologies. Announced in a move that underscores growing competition in the sector, the deal aims to reshape Qualcomm's infrastructure capabilities.

Details from the announcement highlight that Tony Wheble, CEO of Alphawave Semi, will take on the role of running Qualcomm's data center operations post-acquisition. This leadership transition is expected to integrate Alphawave's expertise in high-speed connectivity solutions directly into Qualcomm's portfolio.

The acquisition comes amid intensifying rivalry with players like Nvidia in the AI data center market. Published on December 22, 2025, the news reflects Qualcomm's bold pivot toward enterprise AI applications, building on its established strengths in mobile and computing chips.

While financial terms of the deal were not disclosed in initial reports, it signals Qualcomm's commitment to diversifying beyond consumer devices into high-growth data center opportunities.

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Elon Musk announces SpaceX-xAI merger at podium, with screen showing orbital AI data centers, Starships, and Mars visions.
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SpaceX acquires xAI to power AI with space data centers

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Elon Musk announced on February 2, 2026, that his SpaceX company has acquired his AI startup xAI, aiming to build orbital data centers to meet surging electricity demands for artificial intelligence. The merger integrates AI, rockets, and satellite technology to create a vertically integrated innovation engine. Musk envisions this enabling advancements like Moon bases and Mars colonization.

xAI has acquired a third building to expand its AI infrastructure, boosting total training compute to nearly 2 gigawatts. This setup includes a $400 million Tesla Megapack energy storage system and will pair with over $30 billion in GPUs once fully built. The project positions it as the most powerful AI compute facility globally, though future developments may dwarf it.

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Elon Musk's SpaceX has acquired his artificial intelligence company xAI, aiming to build data centers in space powered by solar energy. The merger combines AI, rockets, and satellite technology to advance space-based computing. Musk envisions this as a step toward lower-cost AI generation off Earth within a few years.

Nvidia CEO Jensen Huang has dismissed reports suggesting the company is backing away from a significant investment in OpenAI. Speaking in Taipei, Huang emphasized his support for the AI firm and indicated the deal could be Nvidia's largest ever, though not approaching the previously discussed $100 billion figure. This comes amid earlier announcements and recent speculation about the partnership's progress.

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Following its unveiling of open-source Alpamayo AI models at CES 2026, Nvidia CEO Jensen Huang praised Tesla's Full Self-Driving as 'world-class,' while noting strategic differences. Elon Musk dismissed threats to Tesla, revealing hefty Nvidia hardware investments. Analysts see potential challenges to Tesla's self-driving lead amid bullish Nvidia sentiment.

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