In late 2018, Amazon (NASDAQ: AMZN) ramped up the production of its own Graviton CPUs for its own data centers. The move wasn't surprising since it acquired ARM-based chipmaker Annapurna Labs in 2016 to develop its own first-party CPUs and artificial intelligence (AI) chips.
This was clearly bad news for Intel (NASDAQ: INTC), the world's largest maker of data center CPUs, but the first-generation Graviton couldn't match the performance of Intel's flagship Xeon chips. However, Amazon recently introduced the Graviton2, which could significantly narrow that gap.
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