Qualcomm Strikes Amazon Deal Worth Up to $60 Billion for AI Data-Center Chips

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Qualcomm has struck a long-term partnership with Amazon under which Amazon could purchase as much as $60 billion of Qualcomm's AI data-center chips and related products. As part of the agreement, Qualcomm granted Amazon warrants worth roughly $4 billion, allowing Amazon to buy Qualcomm shares at $161.26 per share, with the warrants vesting as Amazon purchases Qualcomm products. The two companies will develop custom AI chips focused on AI inference, along with high-speed optical connectivity for data centers, and Qualcomm is targeting $15 billion in annual data-center chip revenue by 2029. Amazon joins Microsoft and Meta as major cloud customers working with Qualcomm on custom AI chips, though the $60 billion figure is a potential purchase commitment rather than guaranteed revenue, and Qualcomm still must commercialize chips that can compete with Nvidia. Amazon's annualized custom-chip revenue run-rate exceeded $25 billion at the end of the June quarter, and Reuters reported separately that Amazon was preparing its first sterling bond sale as hyperscalers seek funding for AI infrastructure costs.

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Artificial Intelligence▲ · 5 stocks
Amazon.com Inc
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Amazon could purchase up to $60B of Qualcomm AI data-center chips and will co-develop custom AI inference chips, expanding its custom-chip lineup.

Semiconductors▲ · 1 stocks
Qualcomm Incorporated
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▲ PositiveDemandCapitalrelevance

Qualcomm lands a long-term Amazon deal worth up to $60B for its AI data-center chips, targeting $15B annual data-center revenue by 2029.

Biotech & Genomic Medicine▲ · 1 stocks

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