Amazon Working on Second ARM Chip for Its Cloud Business

Posted on November 29, 2019 by Mehedi Hassan in Amazon, Cloud with 1 Comment

Amazon has been one of the leading companies in the cloud business for a while. The company is now looking into new ways to further grow its business and is reportedly readying its second ARM chip for cloud servers, reports Reuters.

Amazon’s first ARM-based chip, Graviton, was released last year as a low-cost option for some customers. The new processor offers the same cost benefits while offering a 20% boost in performance.

The device features a “fabric” technology that will allow it to connect with other chips for more complex and computation-heavy tasks, and Amazon may also need to write software that’s capable of working on ARM’s processors. The new processor uses ARM’s Neoverse N1 processor, featuring 32 cores as compared to its first ARM processor’s 16 cores.

The new chip presents a new challenge for Intel and AMD, who have long been dominating the cloud server processor market. Amazon’s continued investment on building its own ARM-based chips shows the company is serious about challenging the offerings from Intel and AMD, though Amazon–like many other companies investing in ARM chips–has a long way to go to beat AMD, and especially, Intel.

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Comments (1)

One response to “Amazon Working on Second ARM Chip for Its Cloud Business”

  1. mattbg

    Interesting that this is the same type of approach that "killed" the desktop market - siphon off the less-demanding use cases to cheaper, less power-hungry hardware.

    I'd be worried if I was Intel, because shortfalls in the desktop CPU market (which has stagnated) were offset somewhat with data center increases as Cloud and big data became more prominent, and as we've seen with Amazon's effect on physical retail, you don't need to bite off much market share of a large-volume business to make the whole business model start to wobble. Big companies become accustomed to big revenues and have big infrastructure that depends on the revenue stream. If Amazon is doing this, so will Microsoft, and so will Google. And we know Apple is already working on ARM for the desktop, which could also translate to the data center.

    It's like everyone is buying into Apple's idea that you need to do your own hardware to get the most efficient solution.