Amazon Gets Warrants for Up to $4 Billion Qualcomm Stake

Qualcomm and Amazon announced a multigenerational partnership to develop customized chips for AI inference in AWS data centers, along with optical connectivity reaching up to 1.6 terabits per second. Amazon received warrants to buy up to 25 million Qualcomm shares at $161.26 each, potentially worth about $4 billion, with vesting tied to commercial milestones; this is not an immediate investment or guaranteed revenue. The companies could make purchases totaling up to $60 billion through 2036. The deal gives Qualcomm another major hyperscaler customer as it expands beyond smartphones and competes with Nvidia in data-center infrastructure. Qualcomm will also use AWS services, including Bedrock, to accelerate chip development, while projecting data-center revenue of $5 billion in fiscal 2027 and $15 billion by fiscal 2029. Investors responded positively, sending Qualcomm shares sharply higher.