Qualcomm, the largest smartphone processor manufacturer, signed an agreement with Amazon for the company to become a customer of its data center chips. The contract will cover "multiple generations" of products and will give Amazon the right to acquire up to $4 billion in Qualcomm shares.
The partnership will result in the creation of custom chips to support the artificial intelligence infrastructure of Amazon Web Services (AWS), Amazon's cloud service. The two companies will work on chips designed to run AI services and on other components focused on connecting different parts of computers.
Under the terms of the transaction, Qualcomm granted Amazon a warrant, which is the right to purchase shares under predetermined conditions. The announcement was made by Qualcomm on Tuesday, in an official statement.
