Amazon Partnership Boosts Qualcomm's Data Center Ambitions

Qualcomm's partnership with Amazon marks a significant shift in its business strategy, expanding into the lucrative data center market. The deal allows AWS to use Qualcomm's custom AI silicon for AI inference and data-center networking.

The revenue from this deal is expected to start pouring in during the December quarter, according to CFO Akash Palkhiwala. He also referred to the partnership as 'the first of many.'

Analysts see this move as a major step in Qualcomm's diversification beyond smartphones, which has been facing declining demand and rising component costs.