Key takeaways
- Alphabet discloses nearly $548 million in Qualcomm shares
- Google Ventures received stock through Qualcomm's Modular acquisition
- Qualcomm targets $15 billion in annual data-center revenue
Google parent Alphabet has disclosed a $548 million stake in Qualcomm, giving the technology giant exposure to another emerging competitor in artificial intelligence computing as Nvidia faces growing challenges from custom chip developers.
According to Alphabet's November 6 SEC filing, the company held 2.98 million Qualcomm shares valued at $547.9 million as of September 30. The position was managed through Google Ventures, Alphabet's venture capital arm.
Google's $548 Million Stake Comes From Qualcomm's AI Software Acquisition
Qualcomm completed its acquisition of Modular on July 28, issuing approximately 18 million shares as part of the transaction.
The deal carried an accounting purchase price of approximately $2.6 billion, according to Qualcomm's latest annual filing. Modular develops software that allows AI models to operate efficiently across different hardware architectures.
That capability could become increasingly valuable as custom AI chips challenge Nvidia's established GPU ecosystem.
Unlike Nvidia's CUDA platform, which is closely associated with Nvidia hardware, Modular's technology is designed to support multiple computing architectures.
Google Ventures' Qualcomm stake therefore represents exposure to a company expanding its AI infrastructure business, although Alphabet has not identified the holding as a direct strategic investment in data-center processors.
Qualcomm Targets $15 Billion as Nvidia Faces More AI Chip Competition
The disclosure arrives as Qualcomm moves aggressively beyond smartphones into artificial intelligence data centers.
During its June investor presentation, Qualcomm established a target of more than $15 billion in annual data-center revenue by fiscal 2029, alongside $40 billion in non-handset revenue.
The company reaffirmed its $5 billion fiscal 2027 data-center revenue target in its November 4 earnings announcement.
Major cloud providers are increasingly exploring alternatives to Nvidia processors, including internally developed chips and custom accelerators optimized for specific workloads.
Google is pursuing its own TPU expansion, while its broader partnership with Marvell could generate substantial revenue through custom AI infrastructure.
Qualcomm is entering the same competitive environment through its Dragonfly processor family, custom silicon offerings and Modular software platform.
Qualcomm's Smartphone Slump Raises Stakes for AI Expansion
Qualcomm's AI push comes as its traditional smartphone business faces pressure.
The company's fiscal fourth-quarter revenue declined 8% to $10.32 billion, while handset-related chip revenue fell 26% to approximately $5.14 billion.
Qualcomm shares dropped more than 9% on November 5 following disappointing smartphone results and a broader technology selloff, before recovering in Friday's trading.
The company is pursuing additional revenue opportunities, including a recently announced SpaceX partnership supporting Starlink Mobile's planned US network expansion.
