Intel soars on plan to establish Intel Foundry as an independent unit, AWS pact

Intel Corporation (NASDAQ:INTC ) announced a strategic move to set up its Intel Foundry Services as an independent subsidiary within the company. Shares surged 8.6% in afterhours trade. 

The company said the decision is aimed at completing a process started earlier this year, involving the separation of profit and loss, as well as financial reporting for the foundry business and Intel Products.

The creation of this subsidiary is expected to offer clear benefits by providing external foundry customers and suppliers with greater separation from Intel's core operations. It also allows for potential independent funding sources and the optimization of capital structures to spur growth and shareholder value.

Pat Gelsinger, CEO of Intel, assured employees that the leadership team of Intel Foundry Services would remain unchanged and continue to report directly to him. An operating board, including independent directors, will be established to govern the subsidiary.

In a related development, Intel and Amazon (NASDAQ:AMZN ) Web Services (AWS) have entered into a multi-year, multi-billion-dollar agreement to co-invest in custom chip designs.

“This expansion of our longtime relationship with AWS reflects the strength of our process technology and delivers differentiated solutions for customer workloads,” said Gelsinger.

“Intel’s chip design and manufacturing capabilities, combined with the comprehensive and broadly adopted cloud, AI and machine learning services of AWS, will unleash innovation across our shared ecosystem and support the growth of both businesses, as well as a sustainable domestic AI supply chain.”

This arrangement represents a significant broadening of the existing strategic partnership between the two tech giants, aiming to empower customers to handle various workloads and boost AI application performance.

As part of the deal, Intel will manufacture an AI fabric chip for AWS using its most advanced process node, Intel 18A, and a custom Xeon 6 chip on Intel 3.

The collaboration between Intel and AWS is not new, with a history dating back to 2006. AWS is also contributing to the region's technological development with a planned investment of $7.8 billion to expand its data center operations in Central Ohio, adding to its significant investments in the state since 2015.

Source: Investing.com

Последние публикации
Oklo target nearly doubled at Wedbush on AI-driven demand for nuclear energy
24.01.2025 - 18:00
Crypto markets lose steam after Trump's first policy move
24.01.2025 - 18:00
Combination of Google's TPU-DeepMind units may be worth $700 bn - DA Davidson
24.01.2025 - 18:00
British American Tobacco, Altria shares rise after menthol ban proposal dropped
24.01.2025 - 18:00
Morocco stocks higher at close of trade; Moroccan All Shares up 0.34%
24.01.2025 - 18:00
Commerzbank says no talks with UniCredit until specific proposal made
24.01.2025 - 18:00
Venture Global aims for $64 billion valuation at debut in test for energy IPOs
24.01.2025 - 18:00
Intuitive Machines stock surges on NASA contract award
24.01.2025 - 18:00
International Paper's $7.2 billion acquisition of DS Smith gets EU approval
24.01.2025 - 18:00
Short-term stock optimism soars among retail investors, AAII survey shows
24.01.2025 - 18:00
Venture Global shares likely to open up to 6% above IPO price
24.01.2025 - 18:00
Intuitive Surgical, American Express Stir Friday's Market Cap Stock Movers
24.01.2025 - 18:00
BMW joins Chinese EV makers in filing EU court challenge to tariffs
24.01.2025 - 18:00
Turkey stocks lower at close of trade; BIST 100 down 0.08%
24.01.2025 - 18:00
Diageo stock jumps on possible Guinness sale
24.01.2025 - 18:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?