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Qualcomm, AWS Announce Multi-Generational AI Data Center Deal; Amazon to Buy $4.03B in Stock

Qualcomm and AWS announced a multi-generational AI infrastructure deal; Amazon will acquire $4.03 billion in Qualcomm stock.

The work spans two key areas. Qualcomm will help produce custom AWS silicon with a major focus on inference, giving the chipmaker a potentially large entry into the data center semiconductor market where Nvidia has seen major success. On the networking side, Qualcomm will provide optical connectivity for AWS data centers, initially at up to 1.6T and with plans to scale. The companies said they aim to improve performance, power efficiency and cost efficiency as data center demand grows.

Qualcomm CEO Cristiano Amon said: “As AI demand accelerates, data center infrastructure will require advances in both computing and connectivity to deliver greater performance with more efficiency.” AWS vice president Prasad Kalyanaraman added: “By working together on customized silicon and advanced connectivity, we’re delivering more performant, efficient, and cost-effective infrastructure for our customers.”

According to a securities filing cited by TechRadar, the stock purchase is part of the deal. Qualcomm issued warrants for Amazon to acquire roughly $4.03 billion in stock, equivalent to 25 million shares priced at $161.26. Qualcomm shares traded at $174.09, up nearly 5% in five days.

Amazon reported a global average power usage effectiveness of 1.14 in its 2025 sustainability report, nearly 9% better than the public cloud industry average of 1.25 but above Google’s fleet-wide average of 1.09. TechRadar said the collaboration could help Amazon narrow that efficiency gap.