Qualcomm said on September 8 it will work with Amazon across multiple generations of customized silicon for Amazon Web Services AI infrastructure, Reuters, Bloomberg, and CNBC reported. The partnership focuses on AI inference chips and high-speed optical connectivity, including solutions extending to 1.6 terabits per second.
As part of the tie-up, Qualcomm issued warrants letting an Amazon affiliate buy up to 25 million Qualcomm shares at $161.26 apiece about $4 billion of face value — according to an SEC filing cited by the outlets. Shares vest in tranches tied to commercial arrangements, binding purchase orders, and actual purchases of Qualcomm server chips, technology, systems, and manufacturing services. The filing caps the purchase activity counted for full vesting at $60 billion; that figure is a vesting ceiling, not a disclosed Amazon spend commitment. About 3.75 million shares vested on issuance against initial purchase commitments, CNBC and filing summaries said. The warrant expires September 3, 2036, and allows cashless exercise.
Qualcomm shares rose more than 3% on the news. Analysts framed the deal as evidence Qualcomm’s data-center push beyond smartphones is landing hyperscaler customers after Meta’s earlier CPU interest and a $15 billion data-center revenue target for fiscal 2029. Amazon’s custom-chip business already runs above a $25 billion annualized revenue rate, Reuters noted, while Qualcomm plans to deepen its own use of AWS for chip-design workloads.
The arrangement sits in the same financing pattern as Marvell’s custom-chip stake deal with Google. This brief covers the September 8 announcement wave; product names, volumes, and delivery dates were not disclosed.