Qualcomm and Amazon sign multi-generation custom AI chip deal tied to up to $60 billion in purchases; shares jump
Qualcomm announced on September 8 a multi-generation partnership with Amazon Web Services (AWS) to build custom AI inference chips for AWS data centers, along with optical connectivity technology reaching 1.6 terabits per second, drawing in part on capabilities Qualcomm gained through its acquisition of Alphawave Semi. As part of the deal, Qualcomm issued Amazon warrants for up to 25 million shares of Qualcomm common stock (strike price $161.26 per share, a position worth roughly $4 billion), vesting in tranches tied to milestones such as Amazon signing purchase agreements, placing binding orders, and actually buying chip products — vesting conditions linked to up to $60 billion in payments to Qualcomm. The warrants expire on September 3, 2036; 3.75 million shares have already vested based on Amazon's initial purchase commitments. Qualcomm shares jumped more than 9% on the news.
Verification note: Summarized from CNBC and Yahoo Finance reporting. The warrant structure and vesting terms are complex; refer to Qualcomm's official announcements and SEC filings for the final agreement terms.