If you needed any further proof that AI data centers are big business and every tech company is going to start moving in that direction, look no further than Alphabet and its half a billion dollar investment in Qualcomm this quarter. Alphabet, the parent company of Google, is said to have invested a total of around $548 million in Qualcomm to help with its push into AI data center expansion. Specifically in providing chips for data centers as the business is still booming.
AI data centers, which many see as the main reason for the RAM crisis and rising costs of memory, have already secured contracts with top memory companies like Samsung, Micron, and SK Hynix, and now Qualcomm wants to be a part of that. Earlier this week, Qualcomm had reported that it believes a large portion of its business will eventually come from AI data centers. Noting that by 2029 it predicts that it will be pulling in around $15 billion.
The Alphabet investment in Qualcomm is a push to help the chipmaker amid falling smartphone sales
One of the reasons that Qualcomm says it’s shifting focus to AI data centers is falling smartphone sales. Following the start of the RAM crisis at the tail end of 2025, major smartphone brands, including Samsung, Google, and Apple, have raised prices on hardware for consumers to help offset increased manufacturing costs brought on by higher prices on memory, which has made the bill of materials balloon for some companies. Earlier this year, HP had said that RAM was already almost 30% of its bill of materials for computers.
Because of these increased costs, smartphone shipments have stalled and consumers aren’t spending as much money to upgrade or buy new devices. In the wake of this, Qualcomm has moved to secure a position as an AI chip supplier, and has already reportedly secure partnerships with Amazon and Meta from earlier this year.
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