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Qualcomm Wins Key Verdict in U.S. Chips Trial Against Arm

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Qualcomm scored a significant victory in its legal battle with Arm Holdings, as a U.S. federal court jury found that Qualcomm’s central processors are properly licensed under its agreement with Arm. However, the case ended in a mistrial on one critical issue, leaving some aspects unresolved.

The dispute centers on Qualcomm’s use of technology from Nuvia, a startup it acquired in 2021 for $1.4 billion, and its licensing agreement with Arm. After deliberating for over nine hours, the jury ruled that Qualcomm did not breach its license with Arm and that its chips using Nuvia technology are fully protected by its contract with Arm.

However, the jury could not unanimously decide whether Nuvia violated the terms of its license with Arm before being acquired by Qualcomm. As a result, Judge Maryellen Noreika encouraged the parties to mediate, though Arm has already vowed to seek a new trial.

Arm’s shares fell 1.8% in extended trading following the decision, while Qualcomm’s shares rose by the same margin. Qualcomm hailed the ruling as a vindication of its innovation rights, while Arm expressed disappointment over the jury’s inability to reach a consensus on key claims.

The case has implications for Qualcomm’s ambitions in the laptop market, particularly its push into “AI PCs” designed to handle advanced tasks such as chatbots and image generation. Competitors like Nvidia, AMD, and MediaTek are also vying to create Arm-based processors for this growing market.

Analysts view the verdict as a stabilizing factor for Qualcomm’s roadmap. “The risk of losing access to Nuvia cores is much closer to being off the table,” said Stacy Rasgon, a Bernstein analyst.

The trial also reignites industry-wide questions about the boundaries of Arm’s intellectual property. While Arm licenses its architecture to companies like Qualcomm and Apple, it argued in court that its agreement with Nuvia allowed it to demand the destruction of custom core designs.

“This trial has ramifications for the entire tech ecosystem,” said Jim McGregor of Tirias Research. “Arm’s architecture forms the backbone of everything from consumer gadgets to satellites, and this verdict underscores ongoing tensions between licensing and innovation.”

Despite the partial victory for Qualcomm, unresolved issues regarding licensing terms and royalty rates may continue to impact future negotiations across the semiconductor industry.

 

Amazon Unveils “Buy with AWS” Button for Cloud Software Vendors

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Amazon is expanding its cloud business by introducing a new feature called the “Buy with AWS” button, aimed at streamlining the purchasing process for cloud software vendors and their customers. This feature, announced at Amazon Web Services’ (AWS) Reinvent conference in Las Vegas, allows software vendors to embed a payment option on their websites that enables customers with AWS accounts to buy services directly, taking advantage of pre-agreed discounts.

AWS, the leading cloud provider, brings in over $100 billion in annual revenue, and many software vendors, including Databricks, Wiz, and Workday, host their products on AWS. Now, these vendors can simplify the transaction process, providing a more seamless buying experience for users who are already part of the AWS ecosystem.

Matt Yanchyshyn, AWS’ vice president of marketplace and partner services, emphasized that the new button is designed to increase both customer and partner loyalty, ultimately improving sales conversion rates. The integration is simple for software companies, with the only requirement being that they sell through the AWS Marketplace, where Amazon has recently reduced fees to 3% or lower in some cases.

On the consumer side, the introduction of the “Buy with AWS” button mirrors Amazon’s successful “Buy with Prime” program, which allows retailers to integrate Amazon’s fulfillment network into their own websites. However, the AWS button offers a key difference—there are no fees for software vendors to embed it on their sites. This arrangement results in more revenue for Amazon, as the purchases are tied to services running on AWS.

“Buy with Prime is a separate initiative, but we work closely with that team,” said Yanchyshyn, highlighting the distinction between the two programs. “Buy with AWS is focused on a different use case.”

For cloud software vendors like Databricks, the new feature promises to simplify the purchasing process and increase AWS usage. David Meyer, senior vice president of product management at Databricks, noted that “Buy with AWS” will likely lead to a higher share of revenue from AWS deployments, as it simplifies the buying process.

Workday, which provides finance and human resources software, plans to implement the button for its Adaptive Planning product, acquired in 2018. The company hopes that the button will expedite procurement and make it easier for customers to adopt their software through the AWS Marketplace.

“If this works well, we may expand its use to more products,” said Matthew Brandt, Workday’s senior vice president of global partners. He also mentioned that buyers who are familiar with AWS may be more inclined to choose Workday as a provider.

Industry analysts, such as Ed Anderson from Gartner, believe that the “Buy with AWS” button could prompt other cloud providers to introduce similar features for third-party websites, a move that could further simplify cloud software transactions and increase cloud providers’ market share.

 

Jim Cramer Highlights Success of Salesforce’s AI Products Following Strong Earnings

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Jim Cramer recently discussed the implications of artificial intelligence (AI) on business, particularly in light of Salesforce’s strong earnings results. Cramer emphasized that AI, which has been widely discussed, is proving to be a powerful and profitable technology, especially as showcased by Salesforce’s latest product success.

“I don’t often delve into AI’s potential, but perhaps I should talk about it more,” Cramer said, acknowledging the vast sums of money AI is generating in the business world. He expressed concern about underestimating its financial impact.

Salesforce’s recent quarter exceeded analysts’ expectations, with a nearly 11% jump in share price during Wednesday’s session. On the earnings call, CEO Marc Benioff highlighted the success of Agentforce, Salesforce’s AI-driven platform designed to automate tasks in areas like marketing and customer service. Benioff referred to Agentforce as “unleashing this new era of digital labor,” a tool for businesses to optimize their operations.

Cramer pointed out that although many on Wall Street had initially questioned the profitability of AI, Salesforce’s results demonstrate the tangible value of generative AI in business. In fact, Salesforce claimed it closed over 200 deals involving Agentforce last quarter, underscoring its growing adoption.

Cramer also reassured viewers that AI agents, such as those used in Salesforce’s platform, are not intended to replace human workers. Instead, these AI tools are designed to take over tasks that are repetitive or difficult for companies to fill, allowing workers to focus on more meaningful, creative work.

“When this new industrial revolution fully arrives, people will prefer to interact with AI agents that can handle tasks more efficiently than humans,” Cramer said. “I welcome the rise of Agentforce and the ‘agentics’ that come with it.”

Salesforce did not immediately respond to a request for comment.