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Sept 8 — Qualcomm announced a collaboration with Amazon on Tuesday, spanning several product generations, to develop custom chips for the e-commerce giant's AI data centers.
Shares of the San Diego, California-based chipmaker rose more than 9% in premarket trading. The stock has slipped about 1% this year, as a rebound in August only partly recouped steep losses sparked by weaker smartphone demand.
The companies will work together on chips for AI inference, a fast-growing market focused on running trained AI models that has become a key battleground among semiconductor firms.
Qualcomm and Amazon will also develop high-speed optical connectivity technologies, including solutions extending to 1.6 terabits per second, to support growing bandwidth demands in AI data centers.
As part of the partnership, Qualcomm plans to expand its use of AWS artificial intelligence services and infrastructure for chip design workloads, aiming to shorten development cycles.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Pooja Desai)
