Intel and Amazon Web Services Forge Multibillion-Dollar AI Chip Partnership Amid Challenges
Following a difficult summer of mass layoffs and issues with faulty chips, Intel is moving ahead with a significant multiyear partnership with Amazon Web Services (AWS). On Monday, Intel announced a multibillion-dollar deal to design and manufacture at least two AI-capable chips for AWS.
One of the chips will utilize Intel’s 18A process node, while the other will be based on Intel’s Xeon 6, built using Intel 3 technology. This new agreement builds on the companies’ longstanding collaboration and aims to deepen their partnership.
Both Amazon and Intel are also heavily investing in their Ohio operations. Amazon is planning a multibillion-dollar data center, while Intel is constructing two chip manufacturing plants in New Albany, Ohio. Intel’s expansion is expected to generate over 3,000 jobs in the region.
Ohio Governor Mike DeWine hailed the partnership, emphasizing its importance for US-based manufacturing and Ohio’s emerging role as a leader in AI. The collaboration strengthens Intel’s commitment to domestic manufacturing and AWS’s continued investment in the state.
Amazon, like many tech giants, is betting heavily on generative AI, investing in companies like Anthropic, which developed the Claude chatbots, and incorporating AI-generated features across its platform. AWS has also expanded its AI services, offering tools like a coding assistant, “Q,” and an AI app generator.
For Intel, this deal offers a chance to benefit from the growing AI market. However, the company has faced difficulties in 2023, particularly with its 13th and 14th-generation core desktop chips, which led to legal scrutiny and potential class-action lawsuits. Over the summer, Intel laid off 15,000 employees to address financial struggles.
In addition to this deal, Intel is receiving government support through the 2022 CHIPS Act, which allocated $8.5 billion to expand domestic chip production. This week, Intel also secured an additional $3 billion under the “Secure Enclave” program to design advanced chips for government applications.
Newer Articles
- Enhanced Authentication Features Introduced in WhatsApp for iOS
- Why You Should Make Your Social Media Accounts Private
- Microsoft Empowers Copilot AI with GPT-4 Turbo and DALL-E 3 Advancements
