Qualcomm and Amazon Unveil AI Chip Partnership with $4 Billion Warrant Deal

Qualcomm (QCOM) stock surged over 9% in premarket hours after announcing a major partnership with Amazon. The collaboration will focus on developing specialized AI processors and advanced optical networking infrastructure for AWS data facilities.

The agreement marks the realization of Qualcomm's long-anticipated hyperscaler partner, as hinted at by CEO Cristiano Amon. It encompasses next-generation AI inference processors and optical connectivity capable of 1.6 terabits per second.

Amazon will receive a warrant allowing purchase of up to 25 million QCOM shares priced at $161.26, representing approximately $4 billion in value. This position is valid through 2036 and requires Amazon to potentially invest up to $60 billion in Qualcomm offerings and services across a decade.