Intel and Amazon Deepen AI Partnership Amid Ohio Expansion and US Chip Investments
Following a tumultuous summer of layoffs and technical challenges, Intel is pressing forward with a significant multiyear, multibillion-dollar chip partnership with Amazon Web Services (AWS). Announced Monday, the deal involves Intel designing and manufacturing at least two AI-focused chips for AWS.
One chip will utilize Intel’s advanced 18A process node, while the other will be based on the Intel Xeon 6 architecture, built on Intel 3. This new venture deepens a long-standing relationship between the two companies, expanding their collaboration on cutting-edge technologies.
In addition to this chip agreement, both Intel and Amazon are increasing their investments in Ohio. Amazon is planning to build a multibillion-dollar data center, and Intel is constructing two chip manufacturing plants in New Albany, with the expectation of creating over 3,000 jobs in the region.
Ohio Governor Mike DeWine praised the partnership, saying, “This collaboration between Intel and AWS is a significant step for US manufacturing and further establishes Ohio as a leader in AI.” DeWine also highlighted the continued commitment of Intel and AWS to Ohio, especially in terms of fostering local economic growth.
Amazon has been making substantial investments in AI technologies, including its involvement with Anthropic, the company behind Claude chatbots. The company has also integrated generative AI features into its e-commerce platform, offering AI-generated product descriptions and the “Rufus” shopping assistant. AWS, through its cloud division, offers AI tools such as the “Q” coding assistant and an AI application generator.
Intel, on the other hand, stands to benefit from the growing AI sector as one of the leading US chipmakers. However, the company has faced hurdles this year, particularly with issues surrounding its 13th and 14th-generation desktop chips, leading to investigations and potential lawsuits. In response to financial pressures, Intel announced workforce reductions, laying off 15,000 employees over the summer.
Meanwhile, Intel has also received significant support from the Biden administration under the 2022 Chips Act, including $8.5 billion earlier this year to expand US chip manufacturing. This week, the company secured an additional $3 billion for its role in developing advanced chips for the US government under the “Secure Enclave” program.
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