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The AI boom made the data center chip market Nvidia's. Qualcomm, a chipmaker with its core business built outside that environment, is now making its move into it.
The company has issued warrants to Amazon, giving the cloud and retail giant the right to acquire $4 billion worth of Qualcomm stock as part of an AI infrastructure deal between the two companies.
Warrants give their holder the option to buy a company's shares at a set price. Attaching them to a customer agreement is unusual in the semiconductor industry.
The structure creates a financial alignment between Amazon and Qualcomm that a supply contract would not carry: if Qualcomm gains real ground in data center AI and its stock moves to reflect that, Amazon's warrants appreciate alongside it.
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