AI
Qualcomm inks AI chip, optical networking deal with Amazon
Qualcomm Inc.
Key takeaways
- Qualcomm won a contract to supply Amazon with AI chips and networking hardware.
- Qualcomm issued a stock warrant enabling Amazon to buy up to 25 million shares worth $4 billion.
- The issuance of some shares is contingent on Amazon purchasing up to $60 billion worth of Qualcomm products.
- The companies will collaborate on customized silicon at scale for large-scale AI data centers.
- Qualcomm plans to expand its use of AWS by using Amazon Bedrock to run electronic design automation applications.
Qualcomm Inc. has announced a multi-generational contract to supply Amazon.com Inc. with artificial intelligence chips and optical networking hardware, optimized for inference workloads. As part of the deal, Qualcomm issued a stock warrant allowing Amazon to buy up to 25 million shares worth $4 billion vesting through 2036, with some shares contingent on Amazon purchasing up to $60 billion in Qualcomm products. Additionally, Qualcomm will expand its use of AWS, utilizing Amazon Bedrock to run electronic design automation applications for chip development.
This multi-billion dollar deal secures Qualcomm a massive footprint in Amazon's AI infrastructure.
In their words
“By working together on customized silicon and advanced connectivity, we’re delivering more performant, efficient, and cost-effective infrastructure for our customers”
By the numbers
- 25M
- Shares Amazon can buy via Qualcomm stock warrant
- $4B
- Value of Qualcomm shares Amazon can purchase
- $60B
- Qualcomm product purchase threshold for Amazon share vesting
- 250
- Cores featured in advanced Dragonfly C1000 chips
- 12 miles
- Maximum data transmission distance of CO400 DSP
How it unfolded
- Amazon agreed to buy hardware from Corning Inc.
- Qualcomm announced AI chip and networking deal with Amazon
- Qualcomm stock warrant tranches finish vesting
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Common questions
- What happened with Qualcomm?
- Qualcomm won a contract to supply Amazon with AI chips and networking hardware.
- Where can I read the original report?
- Read the full report at Siliconangle.
