Qualcomm Grants Amazon $4 Billion Warrants for AWS AI Chip Deal
Updated
Updated · CNBC · Sep 8
Qualcomm Grants Amazon $4 Billion Warrants for AWS AI Chip Deal
3 articles · Updated · CNBC · Sep 8
Summary
$4 billion in stock warrants gives Amazon the right to buy 25 million Qualcomm shares at $161.26 under a new AWS AI infrastructure partnership.
The warrants vest in tranches tied to commercial milestones and purchases of up to $60 billion of Qualcomm server chips and related technology, with the award expiring on Sept. 3, 2036.
AWS and Qualcomm said they will work across multiple generations of customized silicon for AI inference, extending Qualcomm's push from mobile chips into data-center processors.
That push gained momentum after Qualcomm unveiled its Dragonfly C1000 CPU in June and said Meta plans to use it in 2028, part of a goal to reach $15 billion in data-center sales by fiscal 2029.
The deal adds another hyperscaler endorsement as Qualcomm tries to chip away at Nvidia's AI lead and tap a CPU market Bank of America sees growing from $27 billion in 2025 to $60 billion by 2030.