Mentioned:
Amazon is continuing to ramp up their bet on the future of artificial intelligence. Which is exactly why they’ve just partnered up with STMicroelectronics.
What’s happening:
- STMicroelectronics (NYSE: STM) has formed a new deal with Amazon (NASDAQ: AMZN) to provide Amazon Web Services with advanced semiconductor technologies
Why it matters:
- STMicroelectronics has publicly stated that the new deal with Amazon is expected to generate multiple billions of dollars of new revenue
Going deeper:
- Amazon will deploy multiple different products from STMicroelectronics in their Amazon Web Services data centres for artificial intelligence workloads, including high bandwidth connectivity solutions, advanced microcontrollers and power integrated circuits for energy efficiency
- Amazon has also received 24.8M warrants in STMicroelectronics as part of the new partnership which can be converted into common shares and vest based on how much hardware Amazon Web Services ultimately purchases from STMicroelectronics
