Qualcomm Teams with Amazon on Custom Data Center Chips
Qualcomm has signed a major deal with Amazon to manufacture custom chips for data centers. The partnership involves a $4 billion investment by Amazon through a warrant issued to Qualcomm's affiliate, allowing the e-commerce giant to buy up to $60 billion in processors over the next decade.
The deal is part of Qualcomm's efforts to expand its presence in the data center market, which it expects to grow to more than $15 billion by fiscal year 2029. The company has already made a significant splash with its Dragonfly C1000 central processing unit for data centers, signed on by Meta.
Qualcomm and Amazon plan to leverage each other's strengths, combining Qualcomm's optical digital signature processor technologies with Amazon Web Services' Bedrock cloud computing service. Cristiano Amon, Qualcomm's president and CEO, said the partnership will deliver 'breakthrough performance and enable the next generation of AI infrastructure.'