Qualcomm Announces Landmark Deal with Amazon for Custom Data-Center Chips
Qualcomm has announced a multiyear agreement with Amazon to supply custom silicon and optical connectivity products, marking a significant expansion into the data-center market. The deal is expected to generate revenue starting in Qualcomm's December quarter and includes potential purchases of up to $60 billion over ten years from Amazon. The partnership supports Qualcomm’s financial targets for its data-center segment: approximately $5 billion in fiscal 2027 and $15 billion by fiscal 2029. The strategy involves custom silicon, AI accelerators, CPUs, and connectivity solutions. Additionally, the deal reinforces Qualcomm's broader growth initiatives beyond smartphones into areas like automotive systems and personal AI devices. Qualcomm’s CFO Akash Palkhiwala emphasized that this agreement is a key component of its long-term data-center revenue goals and reflects confidence in its ability to deliver high-performance products with power efficiency. The company also highlighted the importance of software, citing recent acquisitions such as Modular.
Topics: AI accelerators corporate partnership custom silicon data centers