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Intel foundry business to make custom chip for Amazon, chipmaker's shares jump

162 pointsby testrun9 months ago

11 comments

ksec9 months ago
At one point 25% of Intel&#x27;s DC revenue were coming from AWS, but the competition from AMD and AWS switching every function &#x2F; service they run to their own Graviton just means Intel are no longer required for Amazon. And Intel might as well Fab chips for them to keep them as a customer.<p>Another point I think Amazon is willing to partly &#x2F; dual source ( I dont think Amazon is making a one way jump ) to Intel is TSMC is now constrained on leading node. It is always Apple or Nvidia. And the lead time for them to get any capacity spared is getting longer now Nvidia is also in the game.
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georgeburdell9 months ago
As someone who has had the dubious honor of bidding to supply Amazon, they love dual sourcing to squeeze their suppliers, or just straight up using your bid to negotiate with their preferred supplier
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ckastner9 months ago
&gt; <i>It also said it would pause construction at its chip factory project in Germany for two years, a move Reuters had previously reported. The company plans to pause its project in Poland as well.</i><p>Just three days ago: <i>Poland&#x27;s Intel plant gets EU green light for $1.9B in state support</i> [1].<p>Germany is subsidizing Intel with $11bn.<p>I&#x27;d be fuming.<p>[1]: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=41534763">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=41534763</a>
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ac299 months ago
CEO letter is here: <a href="https:&#x2F;&#x2F;www.intc.com&#x2F;news-events&#x2F;press-releases&#x2F;detail&#x2F;1710&#x2F;a-message-from-intel-ceo-pat-gelsinger-to-employees" rel="nofollow">https:&#x2F;&#x2F;www.intc.com&#x2F;news-events&#x2F;press-releases&#x2F;detail&#x2F;1710&#x2F;...</a><p>There are a few threads on this now, so maybe they can be merged and linked to this primary source instead of news articles summarizing it.
1-69 months ago
Buying Intel at this moment still feels like catching a falling knife. Buyer beware.
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cracrecry9 months ago
ohh, the old trick of talking trash about a company in the mass media when you know an operation is in the works that will raise the stock, so you make the stock go down, you buy it, the operation is announced, you sell and profit.<p>I have been hearing in the last week a lot of &quot;Intel is doomed&quot; and I wondered why. Now I Know.
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BirAdam9 months ago
Dang. I should’ve bought the dip.
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Varloom9 months ago
Big move for Amazon
ChrisArchitect9 months ago
[dupe]<p>More discussion: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=41560359">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=41560359</a>
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stackghost9 months ago
Making one&#x27;s own processor design must be the new &quot;every BigCo needs its own proprietary typeface&quot; from yesteryear.<p>Are we to believe that Amazon&#x27;s workload is so unique that an existing design can&#x27;t fit the bill?<p>This is just a vanity exercise.
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xyst9 months ago
With the amount of money AMZN has at its disposal. I’m surprised they didn’t take the Apple route of making their own chip in house. Apple realized how bottlenecked they were with Intel, and took steps to remove that dependency.<p>Could have been Jassys equivalent of Beso’s AWS, but unfortunately he’s a lousy leader with no imagination beyond the quarterly results.
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