Qualcomm Grants Amazon Rights to Buy Up to $60 Billion in AI Chips

Qualcomm has signed a long-term strategic partnership with Amazon, granting the cloud company the right to purchase up to $60 billion of its AI data-center chips and related products.

The deal gives Amazon warrants worth approximately $4 billion that vest alongside product purchases, allowing the cloud provider to buy shares at $161.26 per share.

Qualcomm expects its data-center chip revenue to reach $15 billion by 2029 as it diversifies beyond smartphones amid declining consumer demand and rising component costs.

The partnership marks progress in Qualcomm's efforts to expand its business with major cloud infrastructure providers, including Microsoft and Meta.