Overview
- Qualcomm announced a multi‑generational partnership with Amazon to co‑develop custom AI chips for AWS, with an initial focus on large‑scale inference and next‑generation optical connectivity.
- Company filings reported that Qualcomm issued Amazon a warrant to buy up to 25 million QCOM shares at $161.26, a financial instrument tied in the filing to as much as $60 billion in potential revenue.
- The deal sent Qualcomm’s stock higher as investors cheered a visible, long‑term customer for the chipmaker’s push beyond phones and into data centers.
- The partnership builds on a long history between the firms, including work pairing Qualcomm’s Snapdragon Digital Cockpit with Amazon’s Alexa services for in‑vehicle AI that splits real‑time edge processing and heavier cloud inference.
- Qualcomm frames the agreement as part of a broader strategy to reach roughly $40 billion in non‑handset revenue and to scale data‑center sales while cloud providers continue to develop their own custom silicon; Qualcomm also disclosed a separate multi‑generational CPU deal with Meta that targets production in the second half of 2028.