Qualcomm strikes AI chip deal with Amazon, offers right to buy about $4 billion in stock
QCOM•Qualcomm to use more AWS services for chip design
As part of the tie-up, Qualcomm plans to expand its use of AWS services and infrastructure for chip design workloads, aiming to shorten development cycles.
Qualcomm's push beyond smartphones gains traction
The agreement is the latest sign Qualcomm's efforts to diversify beyond smartphones are gaining traction as it faces the eventual loss of its Apple AAPL.O modem business, rising component costs and weaker handset demand.
Qualcomm has spent the past year courting cloud providers with custom AI chips and data-center technology as they seek alternatives to Nvidia's NVDA.O dominant processors.
Amazon joins Microsoft MSFT.O and Meta META.O among customers backing that push, which Qualcomm expects will help drive data-center chip revenue to $15 billion by 2029.
