Amazon is betting on AI chips from Intel

Intel, a well-known processor manufacturer, announced a major collaboration with Amazon, specifically its cloud division Amazon Web Services (AWS). This agreement, which includes the production of custom chips for artificial intelligence, brings Intel not only a financial boost but also an important step forward in its strategy to revive and strengthen its market position.

Intel $INTC has entered into an agreement with Amazon $AMZN to manufacture custom AI chips, marking a huge achievement for its manufacturing division. According to an internal memo sent out by CEO Pat Gelsinger to employees, Amazon has committed to being a multi-billion dollar customer of Intel. Intel's shares rose nearly 7% in premarket trading after the announcement. The collaboration includes not only manufacturing but also design services provided by Intel's headquarters in Santa Clara, California.

Amazon, which already develops its own chips for its data servers, has commissioned Intel to manufacture one of those…