Intel has signed an agreement with Amazon's cloud services division to manufacture custom artificial intelligence chips. Following the news, Intel shares rose by about 8%. This was reported by Reuters.
Amazon's cloud computing division AWS is already developing several chips for use in its data centers and has hired Intel to produce at least one version. Intel will produce the chip for artificial intelligence and use the 18A process.
Intel said it expects additional developments from Amazon based on the upcoming 18AP and 14A manufacturing processes. The announcement also outlined a number of steps Intel will take to rehabilitate the business.
Intel will sell a part of its programmable chip business to Altera. The company also announced that it will suspend the construction of a chip plant in Germany for two years. The company also plans to suspend its project in Poland. There are no changes to the company's plans to expand production in the United States.
The company will also take several steps to prioritize the core technologies that underpin its CPUs and reorganize several divisions, including the automotive and peripherals businesses.
In mid-October, the company also carried out the previously announced layoffs of 15,000 employees.