Amazon Bets Big on Qualcomm AI Chips: $60B Deal Secured
Qualcomm, the San Diego-based chipmaker, has just announced a major deal with Amazon. The e-commerce giant will buy up to $60 billion worth of Qualcomm's AI data center chips over the next decade. In return, Amazon received the right to buy up to 25 million shares of Qualcomm stock at $161.26 per share.
The agreement covers more than just standard processors. It includes high-speed optical connectivity components and co-development of technologies like SerDes and optical digital signal processor technology. This will enable data transfer speeds of up to 1.6 terabits per second across Amazon Web Services data center networks.
Qualcomm aims to expand its use of Amazon Web Services infrastructure, including Amazon Bedrock, to speed up its future chip design cycles. The company's CFO and COO, Akash Palkhiwala, said Qualcomm is executing on the strategy it laid out to investors.