Qualcomm issues Amazon warrants to acquire $4 billion worth of chipmaker's stock as part of AI infrastructure deal

JUST IN: Qualcomm issues Amazon warrants to acquire $4 billion worth of its stock as part of an AI infrastructure deal, pushing into the data center market dominated by Nvidia. Shares rise 4%.

Amazon just got warrants for four billion dollars of Qualcomm stock.

The phone chip company is teaming up with AWS to build AI infrastructure, and the paperwork is wild. Qualcomm issued Amazon warrants for 25 million shares at 161 dollars each, vesting only if Amazon actually buys up to 60 billion dollars of Qualcomm's server chips and tech. Shares jumped 4 percent on the news.

This is Qualcomm's second hyperscaler in months. Meta already signed up for its Dragonfly data center CPU coming in 2028, and the company is targeting 15 billion dollars in data center sales by 2029. All of it aimed squarely at the market Nvidia currently owns.

Here's the number that tells you why everyone wants in. Bank of America thinks the data center CPU market more than doubles by 2030, from 27 billion to 60. Qualcomm just bought itself a seat at that table, and Amazon is holding the receipt.

This is Sara White, reporting for HIT.