Amazon, Qualcomm Team Up on AI Chip Technology

Qualcomm, a leading chipmaker, has partnered with Amazon to develop customized silicon for artificial intelligence data centers.

The multi-generational agreement will focus on AI inference and optical connectivity solutions, including 1.6T and future-generation offerings.

As part of the deal, Qualcomm issued a warrant to Amazon for up to 25 million shares with vesting tied to up to $60 billion in Amazon revenues over 10 years.

KeyBanc views this agreement as positive for Qualcomm, improving visibility into the company's data center ramp and long-term growth.