Qualcomm and Amazon Secure Major AI Chip Partnership

• Amazon commits up to US$60 billion to Qualcomm’s AI products.

• Qualcomm targets US$15 billion in data-center revenue by 2029.

By Attala Sabian Andhika, Maria Ella Risandra Puruhita, Nashwah Putri Az-Zahra

September 11 2026, at 16:30 GMT+7 Qualcomm and Amazon announced a multi-generational collaboration to develop custom silicon for large-scale AI data centers, initially targeting AI inference workloads. The initiative will leverage Qualcomm’s data-center platform, including its Oryon CPU and AI accelerators.  Read more: VKTR to Receive Rp2 Trillion Funding From Danantara The companies will also develop advanced optical connectivity solutions supporting speeds of up to 1.6T. Qualcomm will expand its use of AWS infrastructure and AI services, including Amazon Bedrock, to support electronic design automation workloads and accelerate chip development.  Qualcomm said the products are intended to help cloud providers deploy scalable AI infrastructure, while Amazon will work with Qualcomm across multiple product generations. The collaboration supports both computing and networking needs across AI data centers.

Qualcomm and Amazon Secure Major AI Chip Partnership | Source: Qualcomm The agreement is set to generate up to US$60 billion in revenue for Qualcomm over time. Qualcomm also granted Amazon warrants to purchase up to US$25 million Qualcomm shares at US$161.26 each, representing a potential investment of approximately US$4 billion, subject to product purchases and financial milestones. Read more: SK Hynix Announces US$28.6 Billion Share Buyback Amazon initially committed to purchase US$604.7 million worth of Qualcomm shares under the arrangement. Investors reacted positively to the announcement, with Qualcomm shares rising more than 3% after the deal was disclosed.  According to Bob O’Donnell, chief analyst at TECHnalysis Research, “The deal is exactly the kind of development that Qualcomm needed to reassure the market that the lofty data-center ambitions they set for themselves could indeed be met”. 

Qualcomm Company | Source: Barrons The partnership supports Qualcomm’s strategy to expand beyond smartphones and establish a larger presence in the AI data-center market.  Read more: Danantara Set to Acquire IDX Stake After Demutualization The company is seeking to offset pressure from its handset business, including the expected loss of Apple’s modem business and higher component costs, while Amazon joins Microsoft and Meta among major cloud companies working with Qualcomm. 

Qualcomm is targeting US$5 billion in data-center revenue by fiscal 2027 and US$15 billion by fiscal 2029. The company’s focus on inference also differentiates the opportunity from AI training. Qualcomm’s move could broaden its role in AI infrastructure, although Nvidia remains the dominant supplier in the market.

---

Sources:

Barrons

Reuters

Qualcomm