高通与亚马逊签署十年600亿美元AI芯片协议

Give me a sense here as to exactly why and what this deal actually tells us about Qualcomm's attempt to kind of break deeper into the AI data center market. Yeah, I mean, first of all, thanks for having me here. Great to great to be here. Uh, we're very excited about this deal. This is a long term strategic engagement between Amazon and Qualcomm. And it becomes one of the foundation deals for our data center business going forward.

Uh, what we announced today is we are going to engage in multiple generations of custom chip engagement between, uh, Qualcomm and Amazon. We are also going to, uh, supply multiple generation of, uh, optical connectivity solutions to them. And as a part of this, uh, we're looking at a transaction, uh, that is, uh, long term, uh, target of $60 billion in revenue over the next ten years, and we're issuing warrants against it.

So very excited that this is, uh, going to be one of the ways we are going to develop our data center business, and it gives us very high confidence in achieving the 2027 revenue forecast that we put in front of investors a couple of months ago. And also growing, uh, delivering strong growth in 2028 beyond what we had previously expected it to be. An overall, a great, great day for us and great opportunity for us. Just real quickly, though, give me a sense here of of why why you chose to sort of issue the warrants against it.

What was the thinking behind that? Yeah, I think, uh, we are we're looking at the value that this deal is going to bring to Qualcomm. Uh, obviously it's a very large transaction. I think, uh, it allows us to diversify into a new area. This is a structure that has been adopted by few players in the industry. And when we look at the net economics, uh, of this transaction to our shareholders, we think it's very attractive for them.

And that was, uh, the consideration we entered into, uh, into this transaction. And so we talk about maybe the potential upside here, uh, to obviously, uh, the top and bottom line here and give me some sense as to how much runway you think is going. We talk about the AI chip space, and it's evolving and it's evolving fast. We're already sort of moving away from just, you know, sort of the basics to, uh, more, uh, talk about efficiency, uh, and how to actually run these chips, uh, at a level where it's not just going to be a complete, just sort of power hog.

Uh, how far along are we in that process, and how much can Qualcomm sort of guarantee that they'll be at the forefront of that? You know that's a good that's a great question. Qualcomm strength has always been delivering high performance at low power. And this is one of the areas that is making us an attractive option to, uh data center players. Uh, we are developing a broad portfolio that cuts across custom chips, AI accelerators, CPU chips and connectivity chips, and all these kind of solutions for data center have one underlying theme that connects them all from Qualcomm, which is delivering high performance at low power.

And so as power becomes more and more important in data center, I think it positions us well to become a significant player and bring our strengths, uh, to this new market for us. Uh, it was interesting. A little less than a year ago, you announced that, uh, humain deal in Saudi Arabia. And a few months ago this year, uh, you announced that deal with meta with regards to your, uh, your dragonfly, a c, uh, 1000, uh, CPUs here.

Uh, can you give us any sense here as to whether you're in active negotiations with anyone else, uh, that maybe investors should be aware of. So I think what we've announced so far is, uh, is our deal with UMaine, as you rightly pointed out, uh, meta engagement on the CPU side. And then in addition to Amazon, we are also engaged with another global hyperscalers on custom chips. So very strong portfolio of customers. I think we have also have this unique technology called HPC high Bandwidth compute that allows us to deliver AI acceleration in data centers at very high performance, low power and high memory bandwidth.

And these are problem statements that exist in the data center. And, uh, and this technology positions us, Qualcomm, to deliver something that's unique, that solves, uh, what uh, the, the hyperscalers need. So we're very excited. I think we have engagement across a lot of different players in the industry, not just in the US but globally on this technology. And so stay tuned. There's a there's a lot more coming. And we're excited about, uh, the expansion of our portfolio and our customer base.

Uh, Akash, I do have to ask you about, uh, tariff issues as they're back in the news again. Uh, is that having any material impact? Uh, a, uh, not only on, uh, your income statement and balance sheet. But with regards to the rollout of these new products. Are there constraints there that might limit your ability to make good on the agreements that you have? You know, as you know well, I mean, this is a this is an evolving area.

This is something that we track very closely. Uh, but at this point, kind of we don't see any impact, uh, to us at this point. It is contemplated in the, in the guidance that we have given to investors. Um, and it's it's a technology that I think is very important for the industry. And so our partnership is more about bringing technology, bringing solutions to the table, and will continue to track the tariff environment as it as it evolves.

I know we're talking about, uh, data centers in this AI revolution, but obviously you guys still get a lot of money from the smartphone space where expected to have a relatively big event, uh, tomorrow, uh, from Apple announcing new smartphones. Can you just give us a sense overall? You don't need to comment specifically on Apple, but just kind of where we are in this smartphone cycle and how accretive you expect that business to be going forward as you sort of make this bridge, uh, into a more AI centric data center businesses.

Yeah, we're excited about devices at the edge as well. I think we've seen some impact due to the high memory cost and supply constraints on edge devices, especially in the consumer area. But as we look forward, I think, uh, because of AI, we're going to see these devices evolve into something different that becomes devices that you can have an agent I interaction with. And these are devices are so personal. You're carrying them around all the time.

And so we're very optimistic. I think as you look forward you're going to see phones evolve. You're going to see AI accelerators be adopted in phones, not just in data center with our HPC technology. And and then also a new category of devices are emerging personally I devices, something like metal Ray-Ban glasses where you can wear a device and the device can see what you can see. It can hear what you can hear, and you can have an agenda conversation with the device.

And so very excited about how this will evolve. AI is obviously changing everything that is happening on the data center side, but the devices at the edge are not that far behind, and you're going to see those evolve as well, and that will create opportunity for us.