Qualcomm signs $4 billion "multi-generational" data center and AI deal with AWS

Date:
Wed, 09 Sep 2026 12:05:00 +0000

Description:
Qualcomm plans to help AWS build future generations of silicon and optical networking for AI data centers.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Qualcomm to help build custom silicon and optical networking for AWS data centers Amazon will acquire 25 million Qualcomm shares, worth over $4 billion AWS data centers are more efficient than the industry average, but behind Google's Qualcomm and Amazon have announced what they have describing as a "multi-generational product collaboration," in which Qualcomm will help build future AI data center infrastructure for AWS.

Because this isn't a one-off project, instead of announcing a single component, the companies are likely to work together across multiple generations of infrastructure spanning both custom inference silicon and high-speed optical connectivity. Together, the two companies are expected to combine their expertise in AI infrastructure and data centers to improve performance, power efficiency and cost efficiency for a future where data centers exist in even higher volumes. Latest Videos From TechRadar Watch full video here: AWS and Qualcomm to work together on future data centers The project spans two key areas custom AI silicon and networking hardware. On
the silicon front, Qualcomm will help produce custom AWS silicon with a major focus on inference, giving the chipmaker a potentially big entry into the
data center semiconductor market one that Nvidia has seen major success in.

As for networking, Qualcomm will be behind high-performance optical connectivity for AWS data centers, covering connections of up to 1.6T initially but plans to scale. You may like Qualcomm targets Nvidia, AMD, Huawei with Dragonfly AI accelerator rack loaded with 43TB of LPDDR5x, future generations set to smash 7PB/s bandwidth Amazon is buying 2 million Nvidia GPUs for AWS data center expansion Amazon signs multibillion-dollar Corning deal to build the next generation of fiber optic cables for data centers

With data centers under intense pressure from all angles to boost efficiency and reduce resources consumption, operators are being forced to make progress in all areas, and reducing losses between components with efficient
networking is often overlooked compared with outright chip efficiency.

"As AI demand accelerates, data center infrastructure will require advances
in both computing and connectivity to deliver greater performance with more efficiency, Qualcomm CEO Cristiano Amon summarized. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

In Amazon's 2025 sustainability report , it declared a global average PUE of 1.14, which was nearly 9% better than the public cloud industry average of 1.25. Still, Google says it managed a fleet-wide average of 1.09, so Amazon's work with Qualcomm could be key to it overtaking Google.

"By working together on customized silicon and advanced connectivity, were delivering more performant, efficient, and cost-effective infrastructure for our customers," AWS VP Prasad Kalyanaraman added.

As part of the deal, Qualcomm has issued warrants for Amazon to acquire
around $4.03 billion in stock, per a SEC filing the equivalent of 25 million shares priced at $161.26. Qualcomm is currently trading at $174.09, up nearly 5% in five days. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/pro/qualcomm-signs-usd4-billion-multi-generational-d ata-center-and-ai-deal-with-aws


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