Amazon designs more powerful data center chip
INTERNATIONAL - Amazon.com Inc said on Tuesday it had designed a more powerful data center processor chip, as it looks to pose a serious challenge to the domination of market leaders Intel Corp and Advanced Micro Devices Inc.
The AWS Graviton 2 processor, which is estimated to be seven times faster than its previous chip, uses technology from SoftBank Group Corp-owned (9984.T) Arm Holdings.
Reuters reported last week that Amazon was looking to design a data center processor chip to power its cloud unit.
Intel currently controls more than 90% of the server processor market, with AMD controlling most of the remainder.
Data center processor chips are used in cloud computing, an area that is fast emerging as a big business.
With the new chip, Amazon is looking to reduce its reliance on processors made by Intel and AMD to power its money-spinning cloud business, AWS.