Amazon and Qualcomm Unveil Major AI Partnership
Qualcomm's stock surged over 9% in premarket hours after the company announced a major partnership with Amazon. The collaboration will focus on developing specialized AI processors and advanced optical networking infrastructure for AWS data facilities.
The agreement, which has been months in the making, was hinted at by Qualcomm CEO Cristiano Amon earlier this year. As part of the deal, Amazon will receive a warrant allowing it to purchase up to 25 million QCOM shares priced at $161.26, representing approximately $4 billion in value.
The partnership positions Qualcomm advantageously as it works to diminish its dependence on smartphone sales. The company has set an ambitious goal of exceeding $15 billion in data center revenue by fiscal 2029 and is working to expand its presence in the custom AI semiconductor market.