The news states that Intel and AMD have signed a long-term data center CPU procurement agreement with Chinese buyers.

According to informed sources, as prices soar, American chip giants Intel and AMD are signing long-term procurement agreements for data center processors with Chinese server customers. This move highlights the broader impact of the booming development of artificial intelligence: demand has expanded from AI accelerators to memory, network equipment, and server processors, giving suppliers greater bargaining power in seeking long-term procurement agreements. AI data centers not only need graphic processors such as NVIDIA's cards, but also require a large number of central processors to support server, storage, network, and inference workloads. Sources say that the agreements being discussed typically lock in procurement quantities, but not prices. One source stated that most agreements cover supply quantities for about a year, but Intel and AMD have discussed procurement commitments of two years or longer with some customers.