Intel and Amazon Web Services (AWS) have announced an expansion of their long-standing collaboration with a new, multi-year, multi-billion-dollar agreement focused on custom chip design and production. Under this strategic partnership, Intel will produce an advanced AI fabric chip for AWS using its state-of-the-art Intel 18A process node, aimed at enhancing AI and machine learning capabilities.
Intel’s stock saw a 9% increase in after-hours trading following the announcement, reflecting investor optimism about the future of Intel’s chip manufacturing operations. The partnership also signals a major boost to Intel’s presence in the AI market, as AWS continues to expand its cloud services with custom hardware solutions.
Intel announced plans to establish Intel Foundry as an independent subsidiary. This move is expected to provide greater flexibility and innovation in the chip manufacturing space, further enhancing Intel’s competitive edge.
The expanded partnership with AWS represents a significant step forward for both companies as they continue to push the boundaries of custom chip design and advanced manufacturing. With growing demand for AI-driven technologies, this collaboration positions Intel and AWS to lead the next wave of innovation in the semiconductor industry.
