Qualcomm and Amazon unveiled a partnership to develop customized AI inference processors and optical connectivity for AWS data centers, extending across multiple product generations and supporting speeds of up to 1.6 terabits per second. Amazon received a warrant, expiring Sept. 3, 2036, to acquire up to 25 million Qualcomm shares at $161.26 each; vesting is tied to as much as $60 billion in commercial payments, although the arrangement does not guarantee that level of orders. An initial 3.75 million shares vested at issuance under binding commitments. The agreement advances Qualcomm's diversification beyond handset processors as Apple product revenue declines and supports its goal of more than $15 billion in data-center revenue. Management has forecast that two custom-silicon hyperscalers will each contribute more than $1 billion in fiscal 2027, while initial custom chips are expected to reduce QCT gross margin by 1.5 to 2 percentage points but remain operating-profit accretive. Qualcomm closed 3.17% higher at $174.09 on Tuesday and was up 0.04% in Wednesday premarket trading. The announcement also added to investor interest in optical-networking suppliers, including South Korean companies, amid broader AI data-center construction.