Qualcomm and Amazon ink deal for custom data center chips

Qualcomm and Amazon have teamed up to develop custom data center chips, with Qualcomm issuing warrants for 25 million of Amazon's shares at $161.26 each. The warrants will vest in stages contingent on Amazon making purchase orders and completing purchases totaling $60 billion. Qualcomm's CEO, Cristiano Amon, expressed excitement about working with Amazon's AWS to create high-performance, energy-efficient chips for AI infrastructure.

This strategic move is part of Qualcomm's broader plan to diversify its revenue streams, moving away from smartphone chip sales and into edge devices and rack-scale infrastructure. The company recently announced plans to nearly double its non-handset revenue projections to $40 billion by fiscal 2029. Qualcomm reported $9.9 billion in revenue in its latest quarter, with $8.5 billion coming from its CDMA Technologies segment, including smartphone and automotive sales.