Qualcomm Signs Deal to Provide Amazon With Custom AI Chips
Qualcomm Inc., the largest maker of smartphone processors, has signed a deal with Amazon.com Inc. to supply custom data center chips for its artificial intelligence infrastructure. The agreement spans multiple generations and includes provisions allowing Amazon to acquire up to $4 billion in Qualcomm shares through a warrant tied to chip orders valued at up to $60 billion. Under the terms of the transaction, Amazon has been issued a warrant that allows it to purchase 25 million Qualcomm shares at an exercise price of $161.26 each. The warrant is structured so that share vesting occurs in tranches linked to future chip orders by Amazon. This partnership marks a significant expansion for Qualcomm into AI infrastructure and strengthens its relationship with one of the world's largest tech companies. Qualcomm shares surged 9.7% pre-market following the announcement, reflecting investor optimism about the long-term potential of this strategic collaboration.
Topics: AI Chips Custom Silicon Data Centers