Qualcomm Partners with Amazon: Issues Warrant for Up to 25M Shares Tied to $60B Server Chip Deal

Strategic Overview & Commercial Agreement

On September 3, 2026, QUALCOMM Incorporated entered into a strategic collaboration with Amazon (via Amazon Data Services, Inc. and its affiliates) regarding the purchase of Qualcomm Technologies, Inc. (QTI) server chip products, technology, systems, and manufacturing services. In connection with this partnership, Qualcomm issued a 10-year warrant to Amazon.com NV Investment Holdings LLC to acquire up to 25,000,000 shares of Qualcomm common stock.

Warrant & Structuring Details

• Underlying Securities: Up to 25,000,000 shares of Qualcomm common stock ($0.0001 par value).
• Exercise Price: $161.26 per share (cashless exercise permitted).
• Expiration Date: September 3, 2036.
• Vesting Mechanism:
  • Initial Tranche: 3,750,000 shares vested immediately upon issuance based on initial purchase commitments.
  • Subsequent Tranches: Vesting is contingent upon the execution of commercial arrangements, placement of binding purchase orders, and actual hardware/services purchases by Amazon over the term, up to an aggregate payment cap of $60 billion.
• Governance & Registration: The unexercised warrant carries no voting rights. Qualcomm agreed to provide customary registration rights and plans to file a resale prospectus supplement with the SEC.
• Exemption: Issued pursuant to the Section 4(a)(2) private placement exemption under the Securities Act of 1933.

Market & Strategic Implications

This transaction signals a major customer win and multi-year commitment for Qualcomm in the high-performance data center and server chip segment. Structuring equity warrants tied to milestone thresholds—similar to Amazon's historical vendor agreements—aligns long-term commercial incentives and guarantees substantial revenue upside potential up to $60 billion across the 10-year period.