SpaceX announces an agreement with chip manufacturer Qualcomm to provide critical network technology for the services of Starlink Mobile under Elon Musk. This service is a competitor to Verizon, AT &T, and T-Mobile.

Qualcomm stated on Wednesday that the terrestrial network built by SpaceX will “complement the satellite capabilities of Starlink,” with deployment planned to begin next year. The financial terms of this multi-year deal have not been disclosed.

Qualcomm Executive Vice President Durga Malladi stated in a declaration: "We are working with SpaceX to build world-leading cellular infrastructure in the United States, drive the current 5G development, and have the opportunity to lay the foundation for future years of AI native 6G."

Starlink is a key part of SpaceX's business, contributing 36% of the company's revenue and 85% of its operating profit in the third quarter. However, as of now, SpaceX's consumer business still has limitations in mobile direct connection device services, as its satellite network cannot provide full voice, video, and data coverage on popular smartphones like its competitors can.

Today, SpaceX is challenging large mobile operators by acquiring spectrum and establishing partnerships. Last month, the company announced an agreement to acquire a package of nationwide spectrum assets in the 800 MHz frequency band. This news caused a significant drop in the stock prices of American operators. Earlier this week, The Washington Post reported that SpaceX is in negotiations regarding the acquisition of EchoStar's Boost Mobile.

SpaceX went public in June, setting a record for the largest IPO in history, and its current valuation is close to $2 trillion.

According to the cooperation arrangement, SpaceX will use Qualcomm's Dragonwing cellular infrastructure hardware and software to achieve high-capacity coverage of Starlink Mobile in the base stations.

Qualcomm has long been manufacturing chips for cellular networks, but it is better known for providing modems and radio frequency chips inside devices, rather than base station equipment for wireless network operations. Since increasing its presence in the 5G infrastructure market in 2020, the company has been targeting operators and other infrastructure companies as its customers.

Following previous collaborations with Verizon, Dish, and Europe's Vodafone, SpaceX has become one of Qualcomm's most prominent customers or partners in the field of 5G infrastructure.

Although SpaceX plans to use Qualcomm technology to establish tens of thousands of new base station sites, the company has not yet announced its partners with tower companies, nor has it specified how many new towers may be required.

Mobile operators usually rent premises from companies such as American Tower and Crown Castle, which typically accommodate multiple operators at the same location.

SpaceX did not respond to the further information request made by CNBC.

– CNBC’s Kif Leswing has contributed to this report.