Qualcomm Lands Major Amazon AI Deal Worth Up to $60 Billion

Qualcomm has announced a long-term partnership with Amazon to develop custom chips for large-scale AI data centres. The agreement marks a significant step in Qualcomm's push beyond smartphones and into the rapidly growing AI infrastructure market.

The deal could be worth up to $60 billion, according to reports, with Amazon potentially purchasing up to 25 million Qualcomm shares at $161.26 per share through a warrant linked to commercial arrangements and purchases under the partnership.

The custom chips will be designed primarily for AI inference, which is becoming increasingly important as cloud providers seek efficient and scalable alternatives for AI workloads. Inference is the stage where trained AI models process new information and generate predictions or responses.

Qualcomm's stock surged after the announcement, with shares gaining more than 3% during Tuesday's trading session before paring some gains.