Qualcomm and Amazon have announced a multigeneration collaboration to develop customized silicon for large-scale AI data centers, with the companies focusing on chips used for AI inference and high-speed networking inside Amazon Web Services infrastructure. (Qualcomm)
The partnership also covers optical connectivity technology reaching up to 1.6 terabits per second, with Qualcomm supplying technologies including SerDes and optical digital signal processors for links inside data center networks. (Qualcomm)
Alongside the commercial collaboration, Qualcomm issued an Amazon affiliate a warrant to acquire up to 25 million Qualcomm shares at an exercise price of $161.26 per share. The warrant expires in September 2036. (SEC filing)
The shares vest in stages based on commercial agreements, binding purchase orders and actual Amazon purchases of Qualcomm server-chip products, technology, systems and manufacturing services. Qualcomm’s filing ties the full vesting structure to as much as $60 billion in payments, but that figure is a maximum threshold under the warrant arrangement rather than $60 billion of purchases already committed. 3.75 million shares vested when the warrant was issued based on initial purchase commitments. (SEC filing)
Qualcomm also said it plans to expand its own use of AWS infrastructure, including Amazon Bedrock, for electronic design automation workloads used in chip development. (Qualcomm)
The agreement adds Amazon to Qualcomm’s broader push into data center computing. In June, Qualcomm said it was targeting more than $15 billion in annual data center revenue by fiscal 2029, as the company expands beyond its traditional smartphone-chip business. (Qualcomm)