Qualcomm partners with Amazon to develop custom data center chips
Qualcomm has entered a multi-generation agreement with Amazon to design custom silicon for the latter's data centers. The partnership includes developing networking capabilities and other future infrastructure products, marking Qualcomm’s expansion into high-performance computing beyond smartphones. As part of the deal, Amazon received warrants for 25 million shares at $161.26 per share, vesting based on purchase orders totaling up to $60 billion in value. The collaboration is a strategic move by Qualcomm to diversify its revenue and reduce reliance on smartphone chip sales. Qualcomm's stock rose over 3% following the announcement while Amazon shares remained flat. This partnership aligns with Qualcomm’s long-term goals outlined at an investor event, where it projected nearly $40 billion in non-handset revenue by fiscal 2029.
Topics: Amazon Custom Chips Data Centers Qualcomm Technology