Official financial statements or press releases from Intel

Intel Expands AWS Partnership for AI Chips, Shares Surge 8%

Sep 16, 2024, 10:50 PM

Intel Corporation has announced a significant expansion of its strategic collaboration with Amazon Web Services (AWS), resulting in a deal to produce custom artificial intelligence (AI) chips. This partnership, which includes the development of a custom AI fabric chip on Intel's 18A process and a custom Xeon 6 chip on Intel's 3 process, is part of a multiyear, multibillion-dollar framework. Additionally, Intel will establish its foundry business as an independent subsidiary to raise external funding and drive growth. The company has also been awarded up to $3 billion in U.S. government funding under the CHIPS Act to manufacture chips for the military. Following these announcements, Intel's stock surged, rising 8% after hours, 4.3% in afternoon trading, and reaching a premarket increase of 7.5%. Intel CEO Pat Gelsinger outlined these strategic moves as part of a broader effort to cut costs and bolster the company's chip-making division.