Qualcomm Partners with Amazon to Supply Custom Data Center Chips
San Diego, Tuesday, 8 September 2026.
On September 8, 2026, Qualcomm partnered with Amazon Web Services to build custom artificial intelligence chips, granting Amazon rights to acquire up to $4 billion in Qualcomm shares.
Strategic Partnership Announced
Following the announcement on September 8, 2026, Qualcomm Incorporated (NASDAQ: QCOM) shares rose 3% as the market reacted to the news of the infrastructure deal [1]. The agreement grants Amazon.com Inc. (NASDAQ: AMZN) the right to acquire up to $4 billion in Qualcomm shares, signaling a deepening financial and operational tie between the two tech giants [2]. This multi-generational collaboration focuses on developing customized silicon specifically for Amazon Web Services (AWS) AI infrastructure, marking a significant pivot for Qualcomm beyond its traditional smartphone processor dominance [3].
Challenging the Incumbents
The partnership positions Qualcomm to challenge Nvidia’s dominance in the data center chip market, where GPUs have been essential for training complex AI models [1]. While Nvidia announced new details regarding agentic-optimized CPUs on March 13, 2026, demand for CPUs is rising as they become critical for AI workloads alongside GPUs [1]. Bank of America projects the CPU market will grow from $27 billion in 2025 to $60 billion by 2030, representing a growth rate of 122.222 percent over the five-year period [1]. Dion Harris, Nvidia’s head of AI infrastructure, noted that CPUs are becoming the bottleneck in terms of growing out AI and agentic workflows, highlighting the strategic timing of Qualcomm’s entry [1].
Revenue Targets and Roadmap
Qualcomm is targeting $15 billion in data center revenue for fiscal year 2029, supported by a product roadmap that includes new AI chips and multi-chip interconnect products [1]. The collaboration includes developing high-performance optical connectivity solutions utilizing Qualcomm’s advanced SerDes and optical DSP technologies, supporting bandwidths up to 1.6T [3]. Qualcomm intends to increase utilization of AWS AI infrastructure, specifically Amazon Bedrock, for electronic design automation (EDA) workloads to shorten chip design cycles [3]. This move leverages Amazon’s secure, price-performant AI infrastructure with Qualcomm’s leadership in power-efficient processing and silicon design [4].
Expanding Data Center Footprint
This agreement aligns with Qualcomm’s broader strategy to enable AI scaling from personal devices to large-scale infrastructure, leveraging over 40 years of innovation in high-performance, low-power computing [4]. The company has previously engaged in similar data center infrastructure partnerships, such as the agreement with Saudi Arabia’s Humain on May 14, 2025, to develop data centers and provide hybrid AI services [5]. Cristiano Amon, President and CEO of Qualcomm Incorporated, stated that data center infrastructure will require advances in both computing and connectivity to deliver greater performance with more efficiency [3]. The partnership reflects a shared commitment to pushing the boundaries of what is possible in cost-effective infrastructure for customers [4].