Intel Gains After Landing Amazon Deal, Preparing Factory Split
- Company will produce AI chips for Amazon’s AWS cloud service
- Plan includes foundry division, pause on some overseas plants
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Intel Corp. shares surged for the second straight day after the troubled chipmaker made a raft of announcements, spurring optimism that a turnaround plan is starting to bear fruit.
In the most notable move, the company struck a multibillion-dollar deal with Amazon.com Inc.’s Amazon Web Services cloud unit to coinvest in a custom AI semiconductor. Intel also may receive as much as $3 billion in US government funding to make chips for the military. And it’s turning its ailing manufacturing business, or foundry, into a wholly owned subsidiary.