Qualcomm Amazon AI chip pact announced

Qualcomm and Amazon announced a significant, multi-generational partnership on Tuesday, September 8, 2026, to develop custom silicon chips for artificial intelligence (AI) data centers. The collaboration, which includes a complex warrant agreement tied to potential future revenues of up to $60 billion, sent Qualcomm's stock soaring in early trading. The partnership will focus on designing specialized chips for AI inference, a critical component for running trained AI models, and advanced high-speed optical connectivity technologies capable of speeds up to 1.6 terabits per second. These technologies are essential for meeting the increasing bandwidth demands of modern AI data centers. As part of the agreement, Qualcomm issued Amazon a warrant allowing it to purchase up to 25 million Qualcomm shares at an exercise price of $161.26 each. This warrant is valid until September 3, 2036. According to a regulatory filing, the warrant structure correlates with potential revenues reaching $60 billion, indicating a substantial long-term strategic alliance rather than a conventional short-term procurement arrangement.