Qualcomm announced a multi-generation partnership with Amazon to engineer custom semiconductors for the e-commerce giant's AI data centers, the companies said on Tuesday. The collaboration will concentrate on processors for AI inference, a fast-expanding segment that runs trained machine-learning models in production environments.
Shares of the San Diego, California-based chipmaker rose more than 9% in premarket trading following the news. The stock has nevertheless declined roughly 1% year to date, with an August rebound only partially offsetting earlier, steeper losses attributed to softer smartphone demand.
Beyond processors, the two firms will develop high-speed optical connectivity technologies to meet the rising bandwidth requirements inside AI-focused data centers. The planned connectivity solutions include designs that extend to 1.6 terabits per second, according to the announcement.
As part of the agreement, Qualcomm said it intends to expand its use of AWS artificial intelligence services and AWS infrastructure for chip-design workloads. The move is intended to shorten development cycles for Qualcomm's custom products built in support of Amazon's data-center needs.
Context and focus areas
- Custom AI inference chips - the partnership will target processors optimized to run trained AI models efficiently in data-center environments.
- Optical connectivity - work will include high-throughput interconnect technologies reaching up to 1.6 terabits per second to handle larger internal bandwidth demands.
- AWS for design workloads - Qualcomm plans a deeper dependency on Amazon's AI services and infrastructure during chip development to accelerate time-to-design.
Market reaction and company backdrop
Qualcomm's stock reaction in premarket trading was positive following the announcement, climbing more than 9%. Over the course of the year, the share price has fallen about 1%, with a partial recovery in August that did not fully make up for earlier declines tied to weaker smartphone demand.
Reporting is based on the companies' statements about the collaboration, the planned technology focus areas, and reported market movements.