Qualcomm strikes AI chip deal with Amazon, offers right to buy about $4 billion in stock
- On Tuesday, Qualcomm Technologies announced a multi-generational collaboration with Amazon to develop custom silicon for large-scale AI data centers, targeting scalable AI inference.
- Seeking to lock in long-term supply agreements with major technology platforms, Qualcomm Technologies pushes aggressively beyond its smartphone roots amid exponential AI demand growth.
- Qualcomm issued a warrant allowing Amazon to purchase an about $4 billion stake linked to up to $60 billion of business; the California-based chipmaker's shares rose more than 9% in premarket trading.
- Additionally, Qualcomm Technologies plans to expand use of Amazon Bedrock and AWS AI infrastructure for electronic design automation, while developing optical connectivity solutions extending up to 1.6T.
- Qualcomm President Cristiano Amon stated, "As AI demand accelerates, data center infrastructure will require advances in both computing and connectivity to deliver greater performance," while AWS Vice President Prasad Kalyanaraman emphasized the partnership reflects a "shared commitment to pushing the boundaries.
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Qualcomm Secures Amazon as First Major Western Hyperscaler Customer in $60 Billion AI Infrastructure Push
Qualcomm's new multi-generation deal with Amazon includes custom AI inference chips, 1.6T optical connectivity, and warrants for $4B in stock that vest with up to $60B in purchases. The partnership accelerates the chipmaker's data-center expansion as mobile revenue faces pressure. Revenue starts in late 2026.
Qualcomm will provide customized, scaled silicon for large-scale artificial intelligence (AI) data centers. The two companies will work together on AI inference and optical connectivity solutions.
Qualcomm's (NASDAQ: QCOM) Amazon Web Services AI Chip Deal Reshapes Data Center Growth Outlook
Qualcomm, Inc. (NASDAQ: QCOM) stock extended its gains overnight after a landmark artificial intelligence chip deal with Amazon Web Services signaled a major shift in the chipmaker’s strategic direction. QCOM shares climbed 3.2% on Tuesday before adding another 1% in overnight trading, as analysts moved quickly to reassess the company’s long-term financial prospects. Amazon Web […]
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