The Verge Reports: Microsoft and Intel strike a custom chip deal that could be worth billions

[Daniel Nenni]

"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."

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

Microsoft is a big win for Intel’s chip foundry business.

www.theverge.com

 

[Daniel Nenni]

That is not what Intel said at all. Very poor reporting. Pat said his current foundry funnel is worth a total of $15B, not just the Microsoft deal. Microsoft said they would do one design at 18A. Also, Intel internal designs are not part of that $15B so it is a real customer number! Go IFS!

 

[fansink]

That is not what Intel said at all. Very poor reporting. Pat said his current foundry funnel is worth a total of $15B, not just the Microsoft deal. Microsoft said they would do one design at 18A. Also, Intel internal designs are not part of that $15B so it is a real customer number! Go IFS!

Obviously, in this case, Microsoft has not become an Intel 18A customer “yet”, at best Microsoft contractually said that they would "try some trial design on Intel 18A", and such agreement accordingly has countless “contingencies” (contract exit points), such as;

IF - those trial chips perform as Microsoft expects, and;
IF - those trial chips have reasonable yields and pricing, and;
IF - those trial chips are ready on-time, and;

Countless more “IFs”

If it passes a sufficient number of Microsoft’s contingencies, the contract “value” would likely be over the lifecycle of the chip (2-4 years), not all at once, not during one quarter, not even in one year.

Given the translucent nature of Pat’s previous statements, I wonder what the odds of success for this deal are?

 

[MKWVentures]

the amount of misinformation from foundry day and follow ups is quite amazing. Its not just rumors, its actually mis-stating of what was said and made up conclusions.
Microsoft said they would make one chip. They didnt even say what the chip was, when it will be out, or what the volume is. personally, I dont think they have decided on the chip yet ....

I think the root cause is that people are writing the title of the story with the grabber ("Wintel part 2: worth billions") and then deciding whether to include presentation details or data.

 

[Barnsley]

Obviously, in this case, Microsoft has not become an Intel 18A customer “yet”, at best Microsoft contractually said that they would "try some trial design on Intel 18A", and such agreement accordingly has countless “contingencies” (contract exit points), such as;

IF - those trial chips perform as Microsoft expects, and;
IF - those trial chips have reasonable yields and pricing, and;
IF - those trial chips are ready on-time, and;

Countless more “IFs”

If it passes a sufficient number of Microsoft’s contingencies, the contract “value” would likely be over the lifecycle of the chip (2-4 years), not all at once, not during one quarter, not even in one year.

Given the translucent nature of Pat’s previous statements, I wonder what the odds of success for this deal are?

Is the ELSE in this loop TSMC?

 

[Barnsley]

the amount of misinformation from foundry day and follow ups is quite amazing. Its not just rumors, its actually mis-stating of what was said and made up conclusions.
Microsoft said they would make one chip. They didnt even say what the chip was, when it will be out, or what the volume is. personally, I dont think they have decided on the chip yet ....

I think the root cause is that people are writing the title of the story with the grabber ("Wintel part 2: worth billions") and then deciding whether to include presentation details or data.

Otherwise how else to get "interactions"

Isnt this how modern day journalists are judged and how they actually get paid.

The title of anything just needs to not be an outright lie