Microsoft and Intel strike a custom chip deal that could be worth billions (2024)

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Microsoft and Intel strike a custom chip deal that could be worth billions? ›

Microsoft and Intel strike a custom chip deal that could be worth billions. Intel will be producing custom chips, designed by Microsoft for Microsoft, as part of a deal that Intel says is worth more than $15 billion. Intel announced the partnership during its Intel Foundry event today.

At Intel's Foundry event, the tech company announced a partnership with Microsoft as part of a $15 billion deal in which Intel would be responsible for the creation of custom chips for Microsoft. This deal will focus on manufacturing chips that make use of Intel's 18A process technology.

Because Intel was so focused on making chips for computers, it missed out on the shift to smartphones. It also got out-classed in transistor production by Taiwan Semiconductor Manufacturing Co., and South Korea's Samsung.

As part of the partnership, Intel will produce custom chips designed by Microsoft for Microsoft. While the companies haven't specified what the chips will be used for, Bloomberg has reported that Microsoft has been working on in-house designs for both #processors and #AI #accelerators.

In total, across wafer and advanced packaging, Intel Foundry says that the expected lifetime deal value is greater than USD 15 billion.

Microsoft will bring out new Surface PCs that adhere to its Copilot+ standard for running artificial intelligence models. These PCs and others use Arm-based Qualcomm chips to deliver longer battery life, and PCs with AMD and Intel chips will also become available.

Today at Microsoft Ignite the company unveiled two custom-designed chips and integrated systems that resulted from that journey: the Microsoft Azure Maia AI Accelerator, optimized for artificial intelligence (AI) tasks and generative AI, and the Microsoft Azure Cobalt CPU, an Arm-based processor tailored to run general ...

The White House said Intel has been awarded up to $8.5 billion in CHIPS Act funding, as the Biden administration ramps up its effort to bring semiconductor manufacturing to U.S. soil. Intel could receive an additional $11 billion in loans from the CHIPS and Science Act, which was passed in 2022.

During a conference call with analysts, Intel CEO Pat Gelsinger attributed the loss to the accelerated production of Core Ultra chips for AI PCs. He emphasized that, given the anticipated robust growth of AI PCs in the coming years, this short-term loss is a necessary tradeoff for gaining market share.

Its server chip business has been taking a hit for several years as companies prioritize spending on AI chips, where it lags Nvidia, which has become one of the world's most valuable firms thanks to booming demand for its processors.

Is Microsoft and Intel strike a custom chip deal that could be worth billions? ›

"Intel will be producing custom chips, designed by Microsoft for Microsoft, as part of a deal that Intel says is worth more than $15 billion.

The ownership structure of Intel (INTC) stock is a mix of institutional, retail and individual investors. Approximately 59.66% of the company's stock is owned by Institutional Investors, 0.68% is owned by Insiders and 39.66% is owned by Public Companies and Individual Investors.

Who Are Intel's Main Customers? As of 2023, 40% of Intel's net revenue came from three main customers: Dell, Lenovo Group, and HP. 10 In 2020, a key long-term partnership for the company came to an end when Apple Inc. announced that its Macs would no longer use Intel processors.

Intel stock is tumbling amid news that the company will lay off 15 percent of its staff after a steep decline in revenue and billions in losses in its chip foundry business. It's the largest drop for the company in half a century; at Friday's closing bell, shares were trading at $21.48 — a price not seen since 2013.

Wall Street is now forecasting Intel's 2024 annual revenue at $52.7 billion. Still, Rasgon said he did not know how potentially "separating" the foundry business would help right now, adding that Intel is pretty much its only big volume customer and foundry business is losing about $10 billion-plus.

Today, the Department of Commerce announced that Intel Corporation will receive $8.5 billion in direct funding from the CHIPS and Science Act, in addition to $11 billion in loans.

Intel has reportedly won $3.5 billion in grants from the Pentagon to manufacture chips for the U.S. military. Bloomberg reported that Intel's work will be part of the government's Secure Enclave program, which aims to produce advanced chips with military and intelligence applications.

Typically, Intel offers a certain number of weeks of salary, plus a payout of earned benefits and bonuses as part of a layoff package. Severance pay: Severance at Intel is typically structured as a fixed number of weeks + weeks based on the length of service. For example, 4 weeks + 1.5 weeks per year of service.

Agreement. In November 2009, Intel agreed to pay AMD $1.25 billion as part of a deal to settle all outstanding legal disputes between the two companies.

Microsoft and Intel strike a custom chip deal that could be worth billions. Intel will be producing custom chips, designed by Microsoft for Microsoft, as part of a deal that Intel says is worth more than $15 billion. Intel announced the partnership during its Intel Foundry event today.