TECH NEWS – In response, shares of beleaguered Intel have jumped 8% on the stock market as Amazon AWS (Amazon Web Services) announced that it will receive hardware courtesy of Intel Foundry Services.

This could save the chipmaker, according to Intel CEO Pat Gelsinger, as Amazon’s $7.8 billion investment in data center processes will be a big win for them as they use chips built on Intel’s 18A process nodes, and Amazon and Intel are also looking to jointly “discover” Intel’s 18AP and 14A processes. The press release did not go into financial details, but said they would jointly invest in a multi-year, multi-billion dollar framework for Intel products and wafers.

AWS originally started as an e-commerce company, and this division of Amazon has a high profit margin with recurring revenue. It develops custom chips for its own software, but most of these are based on the Arm architecture. With the new deal, however, it will use Intel’s 3 manufacturing processes to run Amazon’s processes on a custom Xeon 6 chip. The previous Xeon Scalable processors with EC2 showed a 20% increase in computing power over previous instances, making it cheaper to emulate a physical computer in the cloud.

Intel will also produce an AI fabric chip for Amazon AWS on its 18A manufacturing process, and the company is aiming to become chip manufacturing king again. This process will start in 2025 and will be on par with TSMC’s 2-nanometer technology. The AI fabric chip will likely be based on Arm’s designs. Gelsinger said Intel is the only one with a diverse chip portfolio that can meet all AI needs. In its most recent quarterly earnings report, the company said it has a clear blueprint for becoming the largest system foundry in the AI era and the world’s second-largest vendor by 2030.

Amazon, along with the Google-Meta duo, is developing its own chips for AI workloads. Google’s Tensor processors are already being used by Apple to train AI software, and Meta shared details of its training and inference accelerator for AI workloads in April. Meanwhile, Nvidia remains the undisputed leader in AI processors, and companies are scrambling to get their hands on its latest chips, which are in short supply…

Source: WCCFTech