Qualcomm and Amazon Team Up on AI Infrastructure
Qualcomm's stock surged by 6% on Tuesday after the chipmaker announced a partnership with Amazon Web Services (AWS) to build out AI infrastructure. The collaboration, which involves multiple generations of customized silicon, is focused on inference and aims to bring together AWS' comprehensive AI infrastructure with Qualcomm Technologies' leadership in power-efficient processing.
The deal marks a significant win for Qualcomm as it tries to take on NVIDIA in the artificial intelligence market. Qualcomm's CPU, Dragonfly C1000, was unveiled in June and has been touted as being agentic and efficient in computing performance without using too much power.
NVIDIA has dominated the market for graphics processing units (GPUs), which are needed for building sophisticated AI models and running heavy workloads. However, more chipmakers are getting involved in the AI boom now that the CPU is proving key for AI.