Intel to make AI chips for Amazon Web Services

Intel’s foundry business will make custom AI chips for Amazon Web Services, the chipmaker has announced.

The Amazon unit would be a multibillion-dollar customer, paying the chipmaker for design services and manufacturing, Intel CEO Pat Gelsinger announced in a memo released to employees, according to a Reuters report.  

Intel will make an artificial intelligence fabric chip for AWS and use the chip maker's 18A process node, the companies said.

Meanwhile, Intel's board announced that the company will be selling a stake in its programmable chip business Altera and pause construction at its project in Germany for two years. 

The foundry business will have greater independence and is set to be established as an independent subsidiary.  

“A subsidiary structure will unlock important benefits,” Intel CEO Pat Gelsinger said. “It provides our external foundry customers and suppliers with clearer separation and independence from the rest of Intel. Importantly, it also gives us future flexibility to evaluate independent sources of funding and optimize the capital structure of each business to maximize growth and shareholder value creation.”

The company is also taking steps to prioritize the core technology behind its CPUs, and is reorganizing several divisions.