Qualcomm Forges AI Chip Deal with Amazon

Justin Sullivan via Getty ImagesQualcomm agreed to a major deal to supply AI chips and other hardware to Amazon.The U.S. chipmaker on Wednesday said the agreement will see it provide customized silicon chips to support AWS’s growing AI infrastructure, with a specific focus on inference at large-scale data centers.The collaboration comes as part of a wider arrangement under which Qualcomm issued a stock warrant that will enable Amazon to acquire up to 25 million shares of the company at $161.26 per share, for a total investment of $4 billion.That investment was revealed in an SEC filing, which stated that the stock issue depends on Amazon buying $60 billion worth of server chip products, technology, systems and manufacturing services from Qualcomm over the next decade.Beyond the chips, Qualcomm and Amazon will work together on other hardware, including high-performance optical connectivity systems that extend up to 1.6 terabits per second -- and future-generation products -- designed to support the ever-evolving scale and bandwidth needs of AI infrastructure.Related:AWS, Nvidia Expand Partnership With 2 Million More GPUsAlso, Qualcomm has committed to increasing its use of AWS’s AI hardware and software infrastructure, including Amazon Bedrock, to run automated electronic design programs, with the goal of reducing chip design cycles.The deal appears to justify the decision of Qualcomm, traditionally associated with smartphone processors, to enter the chip market and take on the dominance of Nvidia.The firm introduced its first chips -- the AI200 and AI250 -- last October before adding a series of other data center products to its portfolio in June, and unveiling a multi-year agreement to supply chips to social media giant Meta.About the AuthorContributing WriterGraham Hope has worked in automotive journalism in the U.K. for 26 years, including spells as editor of leading consumer news website and weekly Auto Express and respected buying guide CarBuyer.