Amazon's cloud unit readies more powerful data center chip - sources

(Reuters) - Amazon.com Inc’s (AMZN.O) cloud computing unit has designed a second, more powerful generation of data center processor chip, two sources familiar with the matter told Reuters, the latest sign that the company is pouring money into custom silicon for its fastest-growing business.

The new Amazon Web Services chip uses technology from Softbank Group Corp-owned (9984.T) Arm Holdings, the sources said. One of the sources familiar with the matter said it will be at least 20% faster than Amazon’s first Arm-based chip, named Graviton, which was released last year as a low-cost option for easier computing tasks.

If Amazon Web Services’ chip efforts are successful, it could lessen the unit’s reliance on Intel Corp (INTC.O) and Advanced Micro Devices Inc (AMD.O) for server chips.

READ FULL STORY