Qualcomm announced a data center partnership with Amazon Web Services. It will work with Amazon across multiple generations of custom chips for AWS AI infrastructure, focused on inference. Qualcomm also issued warrants letting Amazon buy 25 million of its shares. The shares vest in stages tied to commercial milestones and large chip purchases. Qualcomm shares rose 3% on the news. The chipmaker is better known for smartphone processors. In June it unveiled a data center CPU called Dragonfly C1000, which Meta plans to use from 2028. Qualcomm has said it targets $15 billion in data center sales in fiscal 2029. Bank of America expects the server CPU market to more than double by 2030.
What changed
Qualcomm's data center push rested on a Meta CPU deal from June, with no AWS tie.
- 25 million shares at $161.26
- $4 billion total warrant value
- up to $60 billion chip purchases
- warrant expires 3 Sept 2036
Sources