Intel’s long and hard fall from grace is no secret. After a brutal year for both the company and its stock, however, shares of one of Silicon Valley’s original giants have surged 14% after the beleaguered chipmaker announced a deal with Amazon to produce advanced AI chips.
Intel has a long-running partnership with Amazon Web Services, the biggest cloud service provider in the world. Now, the two companies will co-invest in a custom semiconductor known as a “fabric chip” that will be built in a new factory under construction outside Columbus, Ohio. Intel also announced its struggling foundry business, which has fallen well behind the likes of TSMC, will become an independent subsidiary with the ability to raise outside capital.
