Qualcomm and Amazon partner to develop AI data center infrastructure

Qualcomm and Amazon have entered a multi-generational collaboration to develop customized silicon and next-generation AI data center infrastructure. The partnership focuses on enabling large-scale AI inference through Qualcomm’s expertise in power-efficient processing, silicon design, and system-level integration combined with Amazon’s secure AI infrastructure.

Beyond custom chips, the companies are working on high-performance optical connectivity solutions to meet increasing bandwidth demands, utilizing Qualcomm’s advanced SerDes and optical DSP technologies. Qualcomm also intends to deepen its use of AWS AI infrastructure, such as Amazon Bedrock, for electronic design automation (EDA) workloads to accelerate chip design cycles.

Following the announcement, Qualcomm’s stock reached a two-month high as investors reacted to the company’s strategic shift toward hyperscaler AI infrastructure. Analysts, including those from StoneX, have noted the potential for growth in the data center sector, which provides a significant diversification avenue for the company beyond its traditional smartphone-centric business.