Qualcomm and Amazon Team Up for Custom AI Silicon with $60B Revenue Potential

Qualcomm and Amazon have partnered to develop customized AI silicon for AWS's large-scale data centers, focusing on inference workloads. The collaboration marks a significant milestone in the development of advanced AI infrastructure, with potential revenue of up to $60 billion tied to the deal.

The two companies will co-develop optical connectivity components, including a next-generation 1.6T solution capable of moving data at 1.6 terabits per second. This partnership reflects where AI infrastructure is heading, according to Qualcomm CEO Cristiano Amon, who stated that 'as AI demand accelerates, data center infrastructure will require advances in both computing and connectivity to deliver greater performance with more efficiency.'

As part of the agreement, Qualcomm issued Amazon a stock warrant giving it the option to purchase up to 25 million QCOM shares at $161.26 each. The warrant expires in September 2036.