Intel Corporation INTC recently announced that it had extended its collaboration with Amazon Web Services, Inc. (AWS), a wholly-owned subsidiary of Amazon.com AMZN. The collaboration involves co-investment by the companies in custom chip designs under a multi-year,

This partnership will see Intel manufacturing an AI fabric chip for AWS using its most advanced process node, the Intel 18A.

Intel has secured AWS as a customer for its 18A process. ‘Intel  and Amazon Web Services today announced a co-investment in custom chip designs under a

Amazon Web Services (AWS) has entered into a multi-year, multi-billion-dollar contract with Intel to develop custom chip designs. As part of the co-investment, Intel will produce an AI fabric chip for AWS on Intel 18A, and produce a custom Xeon 6 chip on Intel 3. Intel has long developed slightly customized Xeon Scalable CPUs for AWS.

Intel and Amazon's AWS said on Monday they would expand their collaboration, including a co-investment in custom chip designs, under a multi-year, multi-billion-dollar framework. Intel's shares were up 9% in extended trading.

Intel Corp. says it will spin off its chip fabrication business as part of its ongoing plan to put the brakes on a yearslong decline, stem billions of dollars in losses, and prop up its tumbling stock price.