Qualcomm Announces $60 Billion AI Chip Deal with Amazon
Qualcomm has secured a significant deal to supply up to $60 billion worth of AI data center chips for Amazon. The partnership includes warrants valued at about $4 billion and collaboration on high-performance optical connectivity solutions, as well as increased use of AWS infrastructure by Qualcomm. This move marks Qualcomm's expansion beyond smartphones into the growing AI data center market. CEO Cristiano Amon emphasized that advancements in computing and connectivity are essential to meet rising AI demands efficiently. The partnership is expected to span multiple generations of chips for large-scale AI centers, signaling a strategic shift as Apple moves away from using Qualcomm modems. Qualcomm has faced declining revenues this year due partly to reduced smartphone sales but aims to offset these losses by entering the data center market. Previously, it secured an agreement with Meta Platforms and acquired Modular, an AI software startup.
Topics: AI Infrastructure Chip Design Corporate Partnerships Data Center Chips