Amazon Web Services (AWS) and Qualcomm formed a multi-generational partnership to develop custom AI data center chips. The collaboration focuses on power-efficient silicon design specifically for AI inference workloads. This agreement secures Qualcomm’s second major hyperscaler partner and expands its data center market share.
Amazon continues to expand its custom silicon portfolio, which includes Trainium, Graviton, and Nitro chips. The company currently generates substantial revenue from these proprietary hardware offerings. Amazon is negotiating to sell Trainium AI chips directly to external companies for their own data centers. This move positions Amazon as a direct competitor to established global chip designers.