Qualcomm Plans to Invest $100 Million in the Metaverse

Qualcomm Inc. is planning to invest $100 million in companies developing new technologies in Metaverse, a virtual world where people can interact, work and shop. 

Qualcomm said Monday that it would fund businesses and developers in the form of equity investments and grants. 

The company will start accepting applications for funds bearing the name of the Snapdragon product brand from June. Qualcomm has been using its balance sheet to invest in ventures for more than 20 years and currently manages approximately $2 billion in assets under management in its venture portfolio.

Qualcomm wants to develop the metaverse and expand the market for its chips. The company already supplies chips for Meta Platforms Inc’s virtual reality headset and has also announced a partnership with Microsoft Corp. for developing augmented reality chips. 

At the end of the fourth quarter, the company generated around 83% f its $10.7 billion in revenue from the sales of chipsets. Within the chipset business, mobile handsets accounted for 68% of revenue and the Internet of Things accounted for 17% of sales. The other sources of the company include radio-frequency and automotive components.  

The US venture capital deals involving corporate investors in 2021 jumped 88% from 2020 to $144.7 billion. Some of the companies including Boston Scientific Corp also used their entire investment as a way to build a pipeline of possible acquisition targets.

Earlier, Qualcomm has invested in new technology areas, including 5G and artificial intelligence. The metaverse fund launched this week aligns with the company’s aim to diversify its core business.