Qualcomm and Amazon signed a multi-year custom AI chip agreement, with the latter able to purchase up to $4 billion in shares

The world's largest smartphone processor manufacturer Qualcomm announced that it has signed an agreement with Amazon to develop the latter as a data center chip customer. This collaboration will span "multiple generations" of products, and both parties will develop custom silicon chips to support Amazon Web Services (AWS) artificial intelligence infrastructure.

According to the agreement, Amazon has the right to acquire up to $4 billion in Qualcomm shares. The two sides will also collaborate on developing chips for running AI services, as well as chips for connecting computer components.