Qualcomm and Amazon Unite Forces in Custom AI Chip Development
Qualcomm and Amazon announced a multi-year collaboration to develop custom AI chips for large AI data centers. The focus is on AI inference chips, specifically designed for AWS, as well as optical connections with data rates of up to 1.6 Tbit/s. This partnership aims to accelerate the development of high-performance computing infrastructure for cloud-based services.
The financial structure behind this cooperation is tied to commercial agreements and actual purchases of Qualcomm server chips and technologies. Amazon received stock options for up to 25 million Qualcomm shares at an exercise price of $161.26 per share, with a maximum payment amount of $60 billion considered in the deal.
Qualcomm intends to leverage its expanded Data Center roadmap, including Dragonfly CPUs and AI accelerators, to contribute significantly to this collaboration. The company aims to reach revenue of over $15 billion from its data center business by fiscal year 2029.