Amazon-Qualcomm Partnership Hits $60 Billion with Customized Silicon Deal

Qualcomm's stock surged over 5% in morning trade on Tuesday after Amazon inked a massive $60 billion deal to develop customized silicon for AI data centers.

The multi-generation partnership between the two companies will focus on creating high-performance chips and optical connectivity solutions capable of supporting speeds of up to 1.6 terabits per second.

As part of the agreement, Amazon received a warrant to acquire up to 25 million Qualcomm shares at $161.26 per share, with vesting tied to commercial milestones and potential payments of up to $60 billion to Qualcomm.

The deal marks a significant expansion of Qualcomm's server-chip business and its partnership with Amazon Web Services' AI infrastructure, including Amazon Bedrock for electronic design automation workloads.