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How Amazon's DIY chip innovation threatens Silicon Valley giant Intel

Amazon's new chip arrives as market forces are rapidly undercutting chip makers and their $412 billion in yearly sales

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Amazon logo on the facade of one of their office buildings located in Silicon Valley, San Francisco bay area | Photo: Shutterstock

Cade Metz | NYT
Amazon, the world’s largest online retailer and largest cloud-computing company, is pushing into a new line of work: computer chips.

Late last month, the company, based in Seattle, revealed that it had spent the last few years building a new chip for use inside the millions of servers in its data centers around the world.

Amazon does not plan to sell this chip directly to customers, but the decision by one of the world’s biggest buyers of computer processors to go the do-it-yourself route is likely to have a major impact on Intel, the iconic Silicon Valley chip maker.

Intel has struggled to