AWS just gave Intel a lift by ordering custom Xeon chips for cloud growth

AWS bets on Intel for cloud growth

Amazon Web Services is deepening its partnership with Intel by deploying custom Xeon 6 chips in new cloud servers. The move strengthens Intel’s position as a major supplier at a time when rivals are gaining ground.

For AWS, the upgrade brings higher performance and efficiency to memory-heavy workloads. It also shows how cloud leaders rely on tailored silicon to stay competitive in handling data and artificial intelligence demands at a massive scale.

What the new chips bring?

The new processors are based on Intel’s Granite Rapids architecture, built to deliver both speed and efficiency. With up to 128 performance cores, support for DDR5 memory, and advanced instructions for machine learning, they aim to tackle the heaviest tasks in the cloud.

By optimizing chip features for AWS, Intel provides an edge that off-the-shelf parts cannot match, ensuring servers handle demanding applications more smoothly and predictably.

The launch of R8i instances

AWS rolled out its new R8i and R8i flex instance families powered by these processors. They are designed for memory-intensive applications such as large databases, high-performance computing, and data analytics.

Compared to prior R7i instances, the R8i line offers about twenty percent higher performance and as much as fifteen percent better price performance. Customers gain access to bigger, faster machines without changing their existing software stacks or workflows.

Boosts for real world workloads

The gains are not just theoretical. PostgreSQL databases can run nearly thirty percent faster on the new servers. NGINX web workloads see up to sixty percent better throughput, and recommendation systems for online platforms process data forty percent faster.

These boosts matter for companies that serve millions of users in real time. AWS is packaging the improvements into cloud options that scale smoothly from small tests to global deployments.

Memory bandwidth leaps forward

One of the most important upgrades is memory speed. The new systems feature DDR5 running at 7200 megatransfers per second, providing 2.5× higher memory bandwidth compared to previous-generation R7i instances.

That means data moves more quickly between processors and memory, which is critical for machine learning and in-memory databases. Applications that once struggled with bottlenecks now get headroom to expand. It also positions AWS to meet growing demand for generative AI workloads.

Built in AI acceleration

The Xeon 6 chips come with Intel Advanced Matrix Extensions, a feature set that provides up to 2× performance improvement for machine learning inference tasks. This gives AWS customers faster results on models used for search, personalization, and business analytics.

The acceleration is baked into the processors, so users do not need separate hardware or a complex setup. It makes AI accessible to more customers while reducing cost and operational overhead.

Scalable instances for heavy workloads

The R8i line can scale up to 384 virtual CPUs and as much as three terabytes of memory in a single instance. This capacity allows large organizations to consolidate heavy workloads that would otherwise spread across many servers.

Consolidation reduces networking complexity and can lower costs. It also enables experiments on massive datasets that were difficult to run before. Flex options let customers balance resources depending on performance or budget priorities.

Why AWS chose Intel?

Amazon has long built its own custom chips and partnered with other suppliers, but Intel’s proven track record and manufacturing base still carry weight. The company offers reliability, long-term support, and the ability to tailor designs for specific needs.

By working directly with Intel, AWS can secure unique configurations and ensure supply stability. The decision highlights how cloud leaders often blend in-house designs with outside partnerships to balance innovation and risk.

Intel’s foundry ambitions

This partnership also supports Intel’s push to become a major contract manufacturer. The custom AWS chips are being built on Intel’s advanced Intel 3 process, with additional AI fabric chips planned on the even newer Intel 18A process.

Supplying a giant like Amazon validates Intel’s manufacturing roadmap. It also helps bring revenue that supports factory expansion in the United States, part of a wider industry effort to diversify supply chains.

Competition in the cloud chip race

Cloud providers are increasingly using specialized silicon, often designed in-house. Amazon has Graviton and Trainium, while Google has Tensor Processing Units. Microsoft has its Maia and Cobalt processors.

By choosing Intel for certain workloads, AWS is signaling that no single supplier meets all needs. The move strengthens Intel’s role but also shows how competition drives variety in the cloud. Customers benefit through more options and stronger performance gains year over year.

Cost-efficient scaling with AWS upgrades

One key advantage of the new instances is price performance. AWS claims users get up to fifteen percent better value compared to older machines. That means customers can run the same jobs more cheaply or accomplish more without raising budgets.

For enterprises with tight cost controls, incremental improvements like this are critical. They allow steady scaling without big shocks to operational expenses while delivering higher throughput for daily operations.

Enhance cloud apps for smoother user experience

For businesses running cloud-based databases, web services, or analytics, the upgrade translates directly to user experience. Faster databases mean quicker transactions. Stronger web throughput means pages load more smoothly under heavy demand.

Enhanced recommendation engines mean more accurate personalization in retail or media. These are competitive advantages that affect customer satisfaction and revenue. AWS frames the move as delivering measurable outcomes, not just technical specifications on paper.

Strategic win for Intel

For Intel, securing AWS as a high-profile customer is a critical win. The chipmaker has faced intense competition from AMD, Nvidia, and custom silicon providers. This deal shows Intel can still deliver cutting-edge products tailored for cloud giants.

It also boosts confidence in Intel’s manufacturing roadmap, reassuring investors and partners that its advanced processes are ready for large-scale production. The visibility may help Intel regain ground in the server market.

Long term investment outlook

The collaboration is described as a multiyear, multibillion-dollar co-investment. That means AWS and Intel are committing resources far beyond a single product cycle. Together, they are laying the groundwork for future generations of cloud infrastructure.

The partnership covers not only CPUs but also specialized accelerators and networking chips. By planning years ahead, both companies can align supply, design, and demand forecasts, reducing uncertainty in a rapidly changing technology landscape.

How customers can adopt?

AWS customers can already start experimenting with the new R8i and R8i flex instances in selected regions. Migration from older instances is designed to be straightforward, since software compatibility remains intact.

Enterprises can test workloads, measure gains, and gradually shift production systems. For developers and startups, flexible options make high performance affordable. This rollout strategy is meant to ease adoption and maximize real-world impact from the latest hardware.

Do you know why AWS chose Intel? Because Intel knows exactly what they do best, like these Intel Arc GPUs that did something gamers never expected. They are always ready with surprises.

What it means for cloud growth?

This move underscores how critical custom silicon has become for cloud growth. By working with Intel on tailored processors, AWS ensures it has the horsepower to meet rising demand from artificial intelligence and enterprise computing.

At the same time, Intel gains a stronger foothold in the data center business. The partnership reflects a broader industry trend where collaboration, not just competition, drives progress in the arms race for cloud computing power.

While AWS leans into custom silicon, others innovate through pricing, like Google, which introduced discounted cloud services for the US government.

What do you think about this? Let us know in the comments, and don’t forget to leave a like.

Read More From This Brand:

• Google Cloud becomes ChatGPT’s new engine for faster, smarter AI
• Intel brings new engineering experts to revive Its AI ambitions
• AWS and Microsoft Pause Data Centers Amid AI Dip

Don’t forget to follow us for more exclusive content right here on MSN.

If you liked this story, you’ll LOVE our FREE emails. Join today and be the first to get stories like this one.

This slideshow was made with AI assistance and human editing.