In a nutshell: Amazon Web Services (AWS) is a giant earner for Jeff Bezos’ firm, so it stands to purpose that it is receiving heavy funding. Soon, AWS will probably be getting a second-generation knowledge middle processor chip that’s extra highly effective than its predecessor.

Amazon’s cloud computing unit designed the ARM-based processor, which, as famous by Reuters, will probably be 20 p.c quicker than Graviton, the corporate’s first-gen ARM chip that was created as a low-cost choice.

With Amazon designing the processor itself utilizing ARM expertise, it may see the corporate relying much less on Intel and AMD for server chips.

British chip designer ARM was bought by Japanese multinational telecoms company Softbank for round $31 billion in 2016. The semiconductor designer has been making a reputation for itself within the server market in latest instances—an business dominated by Intel, which has round 90 p.c share, and AMD.

AWS, which rents out servers to companies, is predicted to herald $34.9 billion in gross sales this yr.

While Amazon’s first ARM chip didn’t appear to have an effect on Intel’s knowledge middle business, Bernstein analyst Stacy Rasgon instructed Reuters that huge tech firms have the assets to make extra highly effective ARM-based chips, although Amazon’s new processor isn’t anticipated to match Intel’s Cascade Lake or AMD’s Rome processors.

“ARM by itself I’m not worried about, but Arm in the hands of an Amazon or a Google who could potentially invest in it, that becomes potentially more problematic” for Intel, Rasgon mentioned.

There’s been no official announcement in regards to the chip from Amazon, however it’s anticipated to use ARM’s Neoverse N1 expertise and have 32 cores, double what’s discovered within the Graviton.