Intel secures Amazon AI chip agreement, sparking optimism for a potential comeback

It’s common knowledge that the current chip producers have reached their maximum capacity for AI production in the upcoming years,” stated Park. “Any additional support provided by Intel for AI tasks will be well received by the market. This is crucial as AI applications are often developed in the cloud due to the unpredictable nature of the workload, and AWS poses a significant opportunity for acquiring AI chips.”

Counterpoint Research’s partner and co-founder, Neil Shah, highlighted that this agreement signifies a major accomplishment for Intel, potentially enabling it to integrate Amazon’s next-generation Trainium chip – potentially Trainium 3, with a power exceeding 1000 watts, comparable to Nvidia’s Blackwell architecture.

“Nevertheless, the true impact of this agreement in terms of production volume and the integration of front-end (wafer fab) and back-end (packaging) processes remains to be seen,” Shah commented. “Furthermore, the chip yield rate, in comparison to TSMC, will be a critical factor in determining the profitability of this agreement for both parties.”

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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