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Microsoft and Intel strike a custom chip deal that could be worth billions

An Intel logo surrounded by processors
Illustration by Alex Castro / The Verge

Intel will be producing custom chips, designed by Microsoft for Microsoft, as part of a deal that Intel says is worth more than $15 billion. Intel announced the partnership during its Intel Foundry event today. Although neither company specified what the chips would be used for, Bloomberg noted today that Microsoft has been planning in-house designs for both processors and AI accelerators.

“We are in the midst of a very exciting platform shift that will fundamentally transform productivity for every individual organization and the entire industry,” said Microsoft CEO Satya Nadella in the official press release.

The chips will use Intel’s 18A process, which has been a big part of its road map since the company brought CEO Pat Gelsinger…

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