Qualcomm shares jump on Amazon AI chip partnership

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-13T01:20:21.068Z • Permanent link

Qualcomm's stock price surged by over 10% on Wednesday, fueled by news that Amazon has partnered with the chipmaker to develop custom AI chips for its cloud computing platform, Amazon Web Services (AWS). The partnership, which was announced in a joint press release, aims to accelerate the development of AI workloads on AWS.

Amazon's AWS AI division has been a major player in the growing market for cloud-based AI services, with customers including Google, Microsoft, and Facebook. By partnering with Qualcomm, Amazon is seeking to improve the performance and efficiency of its AI chips, which will enable faster and more accurate processing of complex AI workloads.

Qualcomm's CEO, Steve Mollenkopf, was quoted in the press release, stating that the partnership with Amazon "marks a significant milestone in the development of our custom AI chips, which will help accelerate the adoption of AI in the cloud." The partnership is also seen as a strategic move by Qualcomm to expand its presence in the rapidly growing market for AI chips.

The partnership between Amazon and Qualcomm has significant implications for the Amazon AWS AI domain. For companies like Google, Microsoft, and Facebook, which also rely on AWS for their cloud computing needs, the improved performance and efficiency of Amazon's AI chips could lead to increased competition for market share.

As a result, companies like NVIDIA, which has been a major player in the market for AI chips, may need to reassess their strategies to compete with Amazon's custom AI chips. The partnership also highlights the growing importance of AI in the cloud computing market, with AWS AI workloads expected to grow by over 50% in the next year alone.

Regulatory bodies, such as the US Federal Communications Commission (FCC), have also taken notice of the growing importance of AI in the cloud computing market, with the FCC launching an investigation into the impact of AI on the US economy. As the market for AI chips continues to grow, it is likely that regulatory bodies will play a more significant role in shaping the industry.