Qualcomm and Amazon announced a multi-generational collaboration to develop customized silicon for AI inference workloads inside AWS data centers. Qualcomm’s CFO and COO Akash Palkhiwala pointed to the Amazon arrangement as a key catalyst for the company’s financial trajectory, signaling a significant revenue ramp in data centers expected during fiscal years 2027 and 2028.
The deal structure
Qualcomm granted Amazon a warrant for up to 25 million shares priced at $161.26 each, a package potentially worth roughly $4B. The warrants vest in tranches tied to commercial arrangements linked to up to $60B in purchases, with an initial 3.75 million shares vesting at issuance.
The collaboration extends beyond processors into high-speed optical connectivity solutions capable of reaching 1.6 terabits per second.
Revenue from these custom silicon engagements is expected to begin flowing in the December quarter, with wafer production already underway for initial hyperscaler projects.
