Qualcomm Scores $60 Billion AI Deal with Amazon
Qualcomm has made a significant move into the data center market with a massive AI deal worth up to $60 billion with Amazon. The chip company aims to capture some of the growing data center market, which it believes is worth $1 trillion in total. As part of the agreement, Qualcomm will supply Amazon with its AI data center chips and grant the e-commerce giant warrants worth around $4 billion.
The deal marks a major step for Qualcomm as it seeks to expand beyond its traditional smartphone business. The company has been working on broadening its portfolio, particularly after Apple announced plans to phase out its reliance on Qualcomm cellular modems. Qualcomm's CEO, Cristiano Amon, said the partnership with Amazon will bring decades of leadership in advanced processing and power-efficient compute to deliver breakthrough performance for AI infrastructure.
The deal also includes a joint effort between Qualcomm and Amazon to improve high-performance optical connectivity. Additionally, Qualcomm plans to increase its use of Amazon Web Services and Bedrock infrastructure to reduce chip design cycles.