Intel to Make Custom AI Chip for Amazon, Delay German Plant (3)

Intel Corp. Chief Executive Officer Pat Gelsinger has landed Amazon.com Inc.’s AWS as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker.

Intel and AWS will coinvest in a custom semiconductor for artificial intelligence computing – what’s known as a fabric chip – in a “multiyear, multibillion-dollar framework,” according to a statement Monday. The work will rely on Intel’s 18A process, an advanced chipmaking technology.

Intel CEO Pat Gelsinger has lined up Amazon as a customer for its outsourced manufacturing operations.

Photographer: Annabelle Chih/Bloomberg

The shares jumped more than 7% in premarket trading on Tuesday. They had ...