Qualcomm Announces $60 Billion Deal with Amazon for Server Chips; Lessons from Past Attempt
Qualcomm announced a partnership with Amazon to co-develop server chips tailored for AWS data centers, potentially worth up to $60 billion over the next decade. The deal includes warrants tied to purchase commitments and actual chip sales, addressing past issues where Qualcomm's Centriq processor failed due to lack of buyer commitment in 2017. In contrast to its earlier attempt, this new agreement features binding financial incentives for Amazon to buy chips, with some purchases already locked in. The roadmap includes multiple generations of silicon and a clear revenue target from the data center segment by fiscal 2029. Qualcomm's CEO sees significant growth potential in this area. This time around, Qualcomm is positioning itself differently: it has shifted its strategy toward long-term investment rather than short-term cost-cutting as seen during Centriq’s brief lifespan.
Topics: AI inference Amazon Web Services (AWS) Qualcomm semiconductors server chips