Qualcomm Announces Data Center Infrastructure Partnership with Amazon
Qualcomm shares rose 6% after announcing a partnership with Amazon Web Services to develop customized silicon for AI infrastructure, focusing on inference workloads. This collaboration marks Qualcomm's second major hyperscaler deal following its earlier agreement with Meta and represents the company’s push into data centers, traditionally dominated by Nvidia in the AI space. Qualcomm aims to leverage AWS' secure and price-performant AI infrastructure alongside its expertise in power-efficient silicon design. The chipmaker previously unveiled a CPU for agentic AI called Dragonfly C1000, set for production with Meta in 2028. Qualcomm has targeted $15 billion in data center sales by fiscal 2029 and is expanding into the market through multiple products. The deal highlights growing competition in the AI chip sector as more companies enter a rapidly evolving landscape driven by surging demand for compute resources, with Bank of America forecasting CPU markets to nearly double from $27 billion in 2025 to $60 billion by 2030.
Topics: AI Infrastructure Chip Manufacturing Data Centers Partnerships