Alphabet, Google's parent company, has acquired a stake worth nearly USD 548 million in longtime technology partner Qualcomm, strengthening the chipmaker's position as it looks to expand beyond smartphones and enter the growing data centre market. According to a regulatory filing, Alphabet held nearly 3 million Qualcomm shares as of September 30, 2026. The investment comes as demand for AI infrastructure pushes major technology companies to explore alternatives to expensive NVIDIA processors.
The two companies already have an established business relationship. Qualcomm processors power many smartphones running Google's Android operating system. They have also collaborated on Google's premium Googlebook laptop range, which uses Qualcomm chips.
In 2024, the companies signed an agreement to develop chips and software supporting artificial intelligence applications in vehicles. Their latest developments come as Alphabet increases its exposure to companies involved in the expanding technology and AI ecosystem.
Qualcomm shares gained around 3% in premarket trading on Friday (November 6, 2026) following the disclosure. The stock had dropped more than 9% a day earlier after the company reported disappointing quarterly smartphone chip sales and faced broader market pressure.
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Qualcomm is working to establish itself as a major supplier of custom AI processors for data centres. The company expects revenue from this business to reach USD 15 billion by 2029 as cloud providers seek alternatives to NVIDIA and develop more of their own semiconductor technology.
The chipmaker has already secured interest from major technology companies. In September, it reached an agreement allowing Amazon to purchase up to USD 60 billion worth of Qualcomm AI data centre chips and related products. The arrangement also included stock warrants for Amazon.
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Microsoft and Meta have also placed orders for Qualcomm's data centre processors, supporting its expansion plans. For Alphabet, the investment adds another technology holding to its portfolio. The same filing showed that the company increased its stake in Elon Musk's SpaceX to approximately 555 million shares, compared with 551.2 million previously. However, the filing does not disclose when Alphabet purchased Qualcomm shares or explain the reason behind the investment.