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Amazon is preparing a super-powered data centre chip

(Image credit: Image Credit: Welcomia / Shutterstock)

Amazon is underway with the design of the second generation of its data centre chips, the media are reporting. According to Reuters, the production of the chip, which should be significantly more powerful than last year's one, was confirmed by two sources familiar with the matter.

The new release is reprotedly designed by the same company that built the last one – ARM. Compared to last year's one, called Graviton, this year's chip should be 20 per cent faster.

At the moment of writing, both companies declined to comment on the news.

The media are saying that by pouring significant funds into the production of silicon, not only is Amazon showing how serious it is with its data centre business, but it's also shaking the ground beneath Intel's feet – currently the biggest player in the silicon production industry.

ARM's last year's efforts haven't left much of a dent in Intel's business, analysts are saying, but if the silicon maker continues down this path, the reliance of data centre providers on Intel, around the world on, will be diminshed, significantly.

“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, said Bernstein analyst Stacy Rasgon.

Intel controls more than 90 per cent of the server processor market, with AMD controlling most of what's left.