Amazon’s Homegrown Chips Threaten Silicon Valley Giant Intel | NYT

New realities for Intel

"“Each one of these companies is so large, they represent a market unto themselves,” Mr. Rau said.

In recent years, Google has designed specialized chips for artificial intelligence technology. Facebook and Microsoft, which like most internet companies are major buyers of chips from Intel, have indicated that they are working on similar A.I. chips.

Apple beat the other tech giants to this cost-saving trend four years ago when it unveiled its first custom-built chip for the iPhone. Google and Microsoft are also building the chips that go into devices like smartphones and virtual-reality headsets.

Amazon has upped the ante. In 2015, it spent a reported $350 million to acquire a chip maker, Annapurna Labs, which helped build the new central processing unit, or C.P.U."

Amazon’s Homegrown Chips Threaten Silicon Valley Giant Intel | NYT