Qualcomm Signs Deal to Provide Amazon With Custom AI Chips
Qualcomm Inc., the largest maker of smartphone processors, said it’s signed up Amazon.com Inc. as a data center chip customer in a deal that will span “multi...
(Bloomberg) -- Qualcomm Inc., the largest maker of smartphone processors, said it's signed up Amazon.com Inc. as a data center chip customer in a deal that will span "multiple generations" and gives Amazon the right to acquire as much as $4 billion in shares.
The tie-up will create customized silicon to support Amazon Web Services artificial intelligence infrastructure, Qualcomm said Tuesday in a statement.
Under the terms of the transaction, Qualcomm issued Amazon with a warrant to acquire as many as 25 million of its shares at an exercise price of $161.26 apiece. The warrant shares vest in tranches connected to orders for chips by Amazon up to a value of $60 billion, Qualcomm said.
Shares of Qualcomm jumped 9.7% before markets opened in New York.
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