SAN DIEGO, United States: The Qualcomm Amazon deal is expected to accelerate the chipmaker’s data centre revenue in fiscal 2027 and 2028, Chief Financial Officer and Chief Operating Officer Akash Palkhiwala said.
Qualcomm and Amazon are developing customised silicon for artificial intelligence inference workloads inside Amazon Web Services data centres. The multi-generation collaboration also covers high-speed optical connectivity reaching 1.6 terabits per second.
Qualcomm granted Amazon warrants to purchase up to 25 million common shares at an exercise price of $161.26 each. The warrants vest in stages tied to commercial arrangements involving up to $60 billion in purchases.
An initial 3.75 million shares vested when Qualcomm issued the warrants, according to the company.
Qualcomm expects revenue from its custom silicon engagements to begin in the December quarter. Wafer production for initial hyperscaler projects is already underway.
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The chipmaker is targeting $5 billion in data centre revenue in fiscal 2027 and $15 billion by fiscal 2029. It also aims to reach $40 billion in non-handset revenue by fiscal 2029 as it expands beyond smartphones.
Amazon joins Meta and Microsoft among customers supporting Qualcomm’s data centre strategy.
