San Diego-based Qualcomm has been revealed as Meta’s first major data center customer, with CEO Cristiano Amon announcing the partnership at the Augmented World Expo in Long Beach. The deal positions Qualcomm, traditionally a mobile chipmaker, as a significant player in the AI data center market.

Meta CEO Mark Zuckerberg said the partnership with Qualcomm is aimed at helping to “deliver personal superintelligence to everyone in the world,” according to the San Diego Union-Tribune. The announcement marks a strategic shift for Qualcomm, which has been seeking to diversify beyond its dominant smartphone chip business into new growth areas including data centers and AI infrastructure.

The partnership gives Qualcomm a foothold in the rapidly growing AI computing market, which has been dominated by Nvidia. Meta’s decision to work with Qualcomm suggests the social media giant is looking to diversify its chip suppliers and reduce dependence on a single vendor for its massive AI infrastructure needs.

Qualcomm’s entry into the data center market comes as the company has been showcasing its latest chip technologies at industry events. At the Augmented World Expo, Qualcomm demonstrated new chips designed for smart glasses and other augmented reality devices, as the Union-Tribune reported. The company’s technology powers most of the new augmented reality devices entering the market.

For San Diego’s tech economy, Qualcomm’s expansion into data centers represents a significant development. The company is the region’s largest employer and a magnet for engineering talent. Its growth into new markets could drive additional hiring and investment in the region, bolstering San Diego’s reputation as a hub for semiconductor innovation.

The partnership also reflects broader trends in the AI industry, where major tech companies are seeking to secure diverse computing resources. Meta has been spending aggressively to build AI infrastructure, with commitments of $145 billion in spending forecast. The deal with Qualcomm suggests the company is looking for alternative computing solutions to complement its existing infrastructure.