New long-term agreement strengthens semiconductor supply for next-generation cloud and data centers

New York, United States, 10 February 2026 – In a move highlighting the intensifying race to dominate artificial intelligence and cloud computing, Amazon Web Services has entered into a major multiyear agreement with STMicroelectronics, committing to purchase several billion dollars’ worth of semiconductor chips and related services.

The deal deepens the long-standing relationship between the two companies and positions STMicroelectronics as a key supplier supporting Amazon’s fast-expanding AI and cloud infrastructure. While both sides confirmed the agreement is multiyear and multibillion-dollar in scale, specific financial details were not disclosed.

At the core of the partnership are advanced semiconductor components that will be integrated directly into AWS data centers. These chips are designed to handle high-bandwidth connectivity, manage infrastructure operations, and improve power efficiency, all critical requirements for running large-scale AI workloads.

As demand for AI services surges, data centers have effectively become digital factories, processing massive amounts of information around the clock. Efficient, reliable, and energy-conscious chips are now central to keeping these systems running at scale, and the new agreement aims to strengthen that foundation.

Beyond traditional supply terms, the deal includes an equity-linked element. STMicroelectronics has issued warrants to AWS covering up to 24.8 million ordinary shares. These warrants will vest gradually and are largely tied to AWS’s ongoing purchases of STMicro products and services.

AWS will have up to seven years to exercise the warrants at an initial price of $28.38 per share. This structure gives Amazon potential equity upside while aligning long-term incentives between the cloud provider and its semiconductor partner, without the complexity of a direct ownership stake or acquisition.

The agreement reflects a broader trend in the technology sector, where cloud companies are securing long-term chip supplies to support AI expansion, while semiconductor manufacturers lock in stable, high-volume customers.

As artificial intelligence continues to reshape cloud computing, partnerships like this signal how critical chip innovation and supply chains have become in defining the future of the digital economy.