Qualcomm inks AI chip, optical networking deal with Amazon
Qualcomm Inc. today announced that it has won a contract to supply Amazon.com Inc. with artificial intelligence chips and networking hardware.
The deal is part of a broader partnership that also extends to other areas. Qualcomm has issued a stock warrant that will enable Amazon to buy up to 25 million shares worth $4 billion. The stock will vest in tranches through 2036. According to a regulatory filing, the issuance of some shares is contingent on Amazon purchasing up to $60 billion worth of Qualcomm products.
“By working together on customized silicon and advanced connectivity, we’re delivering more performant, efficient, and cost-effective infrastructure for our customers,” said Amazon Web Services Vice President Prasad Kalyanaraman.
The companies will collaborate on the development of “customized silicon at scale for large-scale AI data centers.” Qualcomm describes the collaboration as “multi-generational,” which indicates that it plans to provide Amazon with multiple generations of chips. The companies indicated that the chips will be optimized for inference workloads.
