Amazon Web Services plans to design more of its own semiconductors: CEO
The new head of Amazon Web Services told CNBC’s Jim Cramer on Friday that the cloud computing giant plans to further design its own semiconductors, highlighting the cost benefits for customers.
“We have several different chips that we’ve designed so far, with more to come,” AWS CEO Adam Selipsky said in a “Mad Money” interview.
“One of the latest is called Graviton2, which actually offers customers 40% better price performance than comparable x86 chips,” said Selipsky, referring to the set of instructions that are essential for processors. Intel.
Selipsky’s comments come as the global economy experiences a semiconductor shortage that has hit a number of industries and underscored the importance of chips in an increasingly digital world.
While Amazon and other big tech companies have been working on chip design in-house for years, some experts believe the pandemic-related chip tightening only serves to accelerate these ongoing efforts.
The Graviton2 is a data center processor chip, an area of the semiconductor industry in which Intel has a strong position. In March, technology-focused news site The Information reported that Amazon was also working on creating a network chip for hardware switches that move data across networks.
Selipsky took over as CEO of AWS earlier this year after his predecessor, Andy Jassy, was promoted to replace Jeff Bezos as CEO of Amazon. Selipsky was CEO of Tableau, a data visualization software company owned by Salesforce.
Prior to that, Selipsky was Vice President of Sales, Marketing and Support at AWS, which is a crucial and highly profitable part of Amazon’s growing empire. Since 2014, he has consistently contributed more than half of the company’s operating revenue, despite significantly lower revenue than the core e-commerce segment.