Qualcomm will make custom data center chips for Amazon under a multi-generation agreement. The parts cover chips for running AI models and high-speed optical links. Qualcomm issued a warrant letting an Amazon affiliate buy 25 million of its shares. The warrant is tied to purchase order agreements for Qualcomm products. It expires in September 2036. The companies plan to combine Qualcomm's optical signal processing with Amazon Web Services' Bedrock service. Qualcomm entered the data center market in June with a processor called Dragonfly C1000, with Meta as a customer. Its finance chief has said data center revenue should exceed $15 billion by fiscal 2029. Chipmakers have increasingly sold stakes to large customers as AI infrastructure demand grows.
What changed
Qualcomm's data center chip business had Meta as its named anchor customer.
What it unlocks
Amazon can order custom Qualcomm inference silicon and optical connectivity for AWS data centers.
- $4B warrant for 25M shares
- up to $60B purchases over 10 years
- optical links up to 1.6 Tbps
- warrant expires Sept. 3, 2036
Sources