Overview
- The companies announced the collaboration on Tuesday, with Qualcomm granting AWS warrants to buy up to 25 million shares at $161.26 that vest as commercial milestones are met.
- The technical program centers on custom silicon optimized for AI inference and on high‑speed optical connectivity work that targets links up to 1.6 terabits per second to ease data movement in AI racks.
- The warrants total roughly $4 billion in potential equity and are structured to vest against up to $60 billion in Qualcomm product purchases over time under a multi‑tranche, 10‑year arrangement.
- Qualcomm says revenue from manufacturing chips for AWS should begin to show in the December quarter and that the partnership will be a core part of its plan to reach $15 billion in data‑center revenue by fiscal 2029.
- Investors reacted positively with Qualcomm shares rising on the news, and the deal strengthens hyperscalers’ move to diversify beyond incumbent GPU suppliers by giving AWS another path to lower‑power, high‑volume inference hardware.