Qualcomm Lands Up to $60B Amazon AI Chip Deal as QCOM Stock Rises

Qualcomm on September 8 announced a multi-generational collaboration with Amazon to develop customised silicon for AWS AI data centres, while disclosing that Amazon received an equity warrant whose vesting can be tied to as much as $60 billion in Qualcomm purchases. Qualcomm shares rose more than 5% in morning trading following the announcement, while Amazon shares fell about 1.2% amid wider market weakness.

Amazon’s Qualcomm warrant

Qualcomm said in an SEC filing that Amazon received a warrant to buy up to 25 million Qualcomm shares at an exercise price of $161.26 per share. The filing says vesting is linked to commercial agreements, purchase orders and purchases of Qualcomm products and services, with related payments capped at $60 billion. The $60 billion figure represents the maximum level of purchases tied to the vesting mechanism, not a stated upfront purchase commitment.

AWS AI silicon and connectivity

Amazon and Qualcomm will develop customised silicon for AWS AI data centres, with the initial focus on AI inference, Qualcomm said.

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