Amazon designs more powerful data center chip

Global Corner

FILE PHOTO: Staff chat at the front desk of the Amazon office in the Manhattan borough of New York, New York, U.S., May 1, 2019. REUTERS/Carlo Allegri

(Reuters) – Amazon.com Inc (AMZN.O) 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 (INTC.O) and Advanced Micro Devices Inc (AMD.O).

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.

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.

Intel currently controls more than 90% of the server processor market, with AMD controlling most of the remainder.

Reporting by Neha Malara in Bengaluru

Our Standards:The Thomson Reuters Trust Principles.

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