Amazon Unveils $60 Billion Qualcomm Deal Amid AI Expansion Push

Amazon has inked a decade-long deal with Qualcomm to co-develop custom AI chips and high-speed optical links. The agreement is reportedly worth up to $60 billion, with Amazon holding a warrant for up to 25 million Qualcomm shares.

The partnership will see the two companies work together on advanced technology projects, with a focus on artificial intelligence and data center infrastructure. This deal marks a significant expansion of Amazon's investment in Texas, where it is building a massive data center hardware plant at a cost of $1.6 billion.

Amazon's bonds are currently trading at a premium to similar non-AI credits, indicating that investors see the company's AI and data center debt as higher quality and more attractive than other companies' debt in this space.