Intel and AMD reportedly secure long-term CPU supply deals with Chinese server customers amidst soaring AI-driven demand and rising chip prices.

Intel and Advanced Micro Devices (AMD) are reportedly entering into longer-term commitments with Chinese server customers for data center processors. This shift towards multi-year deals, which typically lock in purchase volumes but not prices, comes as buyers race to secure supply. The move is driven by rapidly increasing chip prices and a significant crimp in supplies, fueled by robust artificial intelligence (AI) demand, indicating a structural shift in the AI compute contract landscape.