Amazon Partners with Qualcomm on AI Chip Deal Worth Up to $60 Billion

Qualcomm's stock rose by over 5% in morning trade on Tuesday after Amazon expanded its partnership with the chipmaker to develop customized silicon for AI data centers.

The deal, which could be worth up to $60 billion in payments to Qualcomm, marks a significant development in the company's server-chip business and its push beyond mobile chips.

Under the agreement, the companies will work together on AI inference chips and optical connectivity solutions capable of supporting speeds of up to 1.6 terabits per second.

The partnership also includes an equity component, with Amazon receiving a warrant to acquire up to 25 million Qualcomm shares at $161.26 per share.