05:34 PM EDT, 09/16/2024 (MT Newswires) -- Intel ( INTC ) and Amazon's ( AMZN ) Amazon Web Services reported late Monday a co-investment in custom chip designs under a "multi-year, multi-billion-dollar" framework covering product and wafers from Intel ( INTC ).

"This is a significant expansion of the two companies' longstanding strategic collaboration to help customers power virtually any workload and accelerate the performance of artificial intelligence applications," the companies said.

Intel ( INTC ) will produce an AI fabric chip for AWS on Intel ( INTC ) 18A as part of the expanded partnership, they said. Intel ( INTC ) will also produce a custom Xeon 6 chip on Intel ( INTC ) 3, building on their partnership under which Intel ( INTC ) produces Xeon Scalable processors for AWS.

The firms said they also intend to explore the potential for further designs to be produced by Intel ( INTC ) based on Intel ( INTC ) 18A and future process nodes including Intel ( INTC ) 18AP and Intel ( INTC ) 14A, which is expected to be produced in Intel's ( INTC ) Ohio facilities, as well as the migration of existing Intel ( INTC ) designs to these platforms.

Intel ( INTC ) shares were up over 8% in after-market activity while Amazon ( AMZN ) edged lower.

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