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● TRACKER Updated 6d ago · 16 sources tracked

Qualcomm strikes AI chip deal with Amazon, offers right to buy about $4 billion in stock

Qualcomm has entered a multi-generational collaboration with Amazon to develop custom AI chips for data center infrastructure. Under the agreement, Amazon may purchase up to $60 billion in processors and related technology over the next 10 years. As part of the deal, Qualcomm granted Amazon the right to acquire approximately $4 billion in shares at a fixed price of $161.26 per share. These shares vest in tranches based on commercial execution and chip purchase milestones. Qualcomm stock rose between 5% and 10% following the announcement.

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  • ✓ Qualcomm and Amazon are collaborating to build next-generation AI data center infrastructure.
  • ✓ Amazon has the option to buy up to $60 billion in Qualcomm chips and related products over 10 years.
  • ✓ Qualcomm gave Amazon the right to acquire about $4 billion in shares at a fixed price of $161.26 each.
  • ✓ The stock warrants vest in tranches tied to commercial arrangements and technology purchases.
🛡️ Source Corroboration: 16 independent reporting domains (95% confidence) ⏱ Read time: ~2 min

What changed

Qualcomm announced a multi-generational product collaboration with Amazon involving custom AI silicon and a $4 billion stock warrant.

Live updates

  1. Qualcomm and Amazon Partner for Custom AI Data Center Chips

    Qualcomm has entered a multi-generational collaboration with Amazon to develop custom AI chips for data center infrastructure. Under the agreement, Amazon may purchase up to $60 billion in processors and related technology over the next 10 years. As part of the deal, Qualcomm granted Amazon the right to acquire approximately $4 billion in shares at a fixed price of $161.26 per share. These shares vest in tranches based on commercial execution and chip purchase milestones. Qualcomm stock rose between 5% and 10% following the announcement.

    Why it matters

    This deal marks a strategic shift for Qualcomm as it seeks to expand beyond smartphones into AI infrastructure. The partnership aims to bolster Amazon's AI inference hardware capabilities. Qualcomm expects its data center revenue to reach $15 billion within three years.

    What is confirmed

    • Qualcomm and Amazon are collaborating to build next-generation AI data center infrastructure.
    • Amazon has the option to buy up to $60 billion in Qualcomm chips and related products over 10 years.
    • Qualcomm gave Amazon the right to acquire about $4 billion in shares at a fixed price of $161.26 each.
    • The stock warrants vest in tranches tied to commercial arrangements and technology purchases.
    • Qualcomm stock increased following the announcement of the deal.

    Still unconfirmed

    • Qualcomm's data center revenue will reach $15 billion in three years.

    What to watch next

    • Execution of the commercial arrangements triggering the vesting of Amazon's stock warrants.
    • Delivery of the first generation of custom AI chips to Amazon data centers.
    • Updated quarterly revenue reports showing data center growth.
    Sources used for this update (22)
    1. CNBC — Qualcomm stock pops 10% on data center infrastructure deal with Amazon
    2. Bloomberg.com — Qualcomm Signs Deal to Provide Amazon With Custom AI Chips
    3. Reuters — Qualcomm strikes AI chip deal with Amazon, offers right to buy about $4 billion in stock
    4. MarketWatch — Qualcomm’s stock climbs as Amazon chip deal offers investors much-needed good news
    5. Qualcomm — Qualcomm Announces Multi-Generational Product Collaboration with Amazon to Build Next-Generation AI Data Center Infrastructure
    6. Yahoo Finance — Qualcomm Rises 5% on Multi-Generation Amazon AI Silicon Deal; Broadcom Ticks Up, Amazon Holds Flat
    7. Yahoo Finance — Qualcomm and Amazon ink deal for custom data center chips
    8. Barchart.com — QCOM Stock Jumps as Qualcomm Announces AI Infrastructure Deal With Amazon
    9. investopedia.com — Qualcomm Shares Climb on Amazon AI Infrastructure Deal
    10. Barron's — Qualcomm Stock Pops as Amazon Deal Ramps Up AI Ambitions
    11. Yahoo Finance — AMD Jumps 6.7% While Amazon Opens a $60 Billion AI-Chip Door
    12. Yahoo Finance — Why Qualcomm Stock Is Up Today
    confidence 95%
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