Qualcomm has entered into an agreement with Amazon to jointly develop chips for artificial intelligence data centers based on the AWS cloud platform. This partnership could bring Qualcomm up to $60 billion in commercial purchases by September 2036 – marking its first major collaboration with a Western tech giant in the data center chip sector and a direct challenge to Nvidia's dominance.
This is not a license or a memorandum, but a production-ready partnership: Qualcomm is already manufacturing chips and expects revenue starting from the first quarter of the 2027 fiscal year (December 2026). The deal focuses on chips for deploying already trained models. The new chips utilize optical connectivity of up to 1.6 terabits per second. Qualcomm also gains access to AWS infrastructure, including Amazon Bedrock.
Financial details: warrants give Amazon the right to purchase up to 25 million shares of QCOM at $161.26. The first tranche of 3.75 million shares has already been secured. If fully exercised, the warrants are valued at around $4 billion. Qualcomm's shares rose by 3–7% on the day of the announcement.
This marks Qualcomm's first significant involvement with a Western tech giant in the data center silicon space. In June 2026, at an investor day, the company unveiled the Dragonfly C1000 processor and set a target of $15 billion in data center sales by the 2029 fiscal year. It also acquired Alphawave Semi along with its intellectual property for high-speed connectivity.
AWS revenue from its own chips exceeded $25 billion by June 2025 – primarily driven by Graviton and Trainium. For Nvidia, this is another signal: major cloud providers are diversifying their supply sources. Google has TPU, Amazon has Trainium and Graviton, and Microsoft is developing its own accelerators. Marvell Technology, which builds a business on custom chips for clouds, may feel the pressure most acutely.
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