Microsoft and Intel strike a custom chip deal that could be worth billions
Microsoft is a big win for Intel’s chip foundry business.
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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 announcedthe partnership during its Intel Foundry event today. Although neither company specified what the chips would be used for, Bloomberg noted today that Microsoft has been planning in-house designs for both processors and AI accelerators.
The chips will use Intel's 18A process, which has been a big part of its road map since the company brought CEO Pat Gelsinger back to turn things around. The company is counting on its chip foundry services to put it back on top of the chipmaking world, and it seems that Microsoft will be the first major customer for this project.
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Microsoft might be teasing an Xbox handheld.
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