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CPU Supply and IPU Co-development...Stock Price Rises Over 26% This Month
US semiconductor company Intel is making a comeback, strengthening its collaboration with Google after Tesla.
Intel announced on the 9th (local time) that it has signed a multi-year contract to supply its latest central processing unit (CPU) 'Xeon 6' and other key semiconductors to Google Cloud servers.
Google had previously used Intel chips, and this agreement is an extension of that.
Intel emphasized that its Xeon CPUs have improved the performance and energy efficiency of Google's infrastructure and lowered the total cost of ownership.
The two companies also agreed to expand cooperation on the joint development of customized Infrastructure Processing Units (IPUs).
IPUs are chips that improve the efficiency of data centers, handling internal communication, information storage, security, and more.
By having IPUs take over these tasks, which were originally handled by CPUs, CPUs can now focus solely on their primary data processing.
Intel CEO Lip-Bu Tan emphasized, "Expanding AI requires more than just accelerators; it needs a balanced system. CPUs and IPUs play a central role in providing the performance, efficiency, and flexibility demanded by modern AI."
After several years of management difficulties, Intel, which hired CEO Tan last year and carried out high-intensity restructuring by reducing one-third of its employees, is showing signs of revival as the importance of the CPU's role has come to the fore with the shift in the AI competition's focus to 'AI agents'.
In this process, Intel also received investments from the Donald Trump administration, which aims to revive the US semiconductor industry, as well as from SoftBank and Nvidia.
In particular, President Trump supported Intel to gain an advantage in the semiconductor and AI hegemony competition with China and took measures for the US government to acquire approximately 10% of Intel's shares.
Responding to criticism that this was 'state capitalism,' President Trump defended his policy, saying, "I would do those deals all day long for our country."
Intel announced yesterday that it would participate in 'Terrafab,' a large-scale semiconductor manufacturing facility promoted by Elon Musk, CEO of Tesla and SpaceX, and earlier this month, it repurchased its stake in a joint venture for an Irish semiconductor manufacturing plant that it had previously sold due to financial difficulties.
Intel's stock price rose more than 2.7% today compared to the previous day's closing price, reaching $60.58 as of 1:30 PM ET. This is an increase of more than 26% compared to the closing price at the end of last month.
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