December 3, 2019 / 7:39 PM / 2 days ago

Amazon designs more powerful data center chip

FILE PHOTO: Staff chat at the front desk of the Amazon office in the Manhattan borough of New York, New York, U.S., May 1, 2019. REUTERS/Carlo Allegri

(This December 3 story has been refiled to correct typo in paragraph 2)

(Reuters) - Amazon.com Inc (AMZN.O) said on Tuesday it had designed a more powerful data center processor chip, as it looks to pose a serious challenge to the domination of market leaders Intel Corp (INTC.O) and Advanced Micro Devices Inc (AMD.O).

The AWS Graviton2 processor, which is estimated to be seven times faster than its previous chip, uses technology from SoftBank Group Corp-owned (9984.T) Arm Holdings.

Reuters reported last week that Amazon was looking to design a data center processor chip to power its cloud unit.

Data center processor chips are used in cloud computing, an area that is fast emerging as a big business.

With the new chip, Amazon is looking to reduce its reliance on processors made by Intel and AMD to power its money-spinning cloud business, AWS.

Intel currently controls more than 90% of the server processor market, with AMD controlling most of the remainder.

Reporting by Neha Malara in Bengaluru

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