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STMicroelectronics (ST) announced a multi-year agreement worth billions with Amazon Web Services (AWS) to enhance high-performance computing capabilities. As a strategic supplier of advanced semiconductor technologies, ST will provide AWS with specialized connectivity solutions, enabling reduced operational costs and faster service for AI workloads.

Additionally, ST has issued warrants to AWS for the purchase of up to 24.8 million shares at an initial exercise price of $28.38, which AWS can exercise over seven years. The partnership is expected to generate significant revenue starting from 2026.