Amazon Starts Selling Its Own Chips!
Amazon – In a fierce competitive era, Amazon.com, Inc. (NASDAQ:AMZN) goes on with an urge to diversify its portfolio and continuously come up with new offerings for its customers. Wall Street Journal (WSJ) reports that Amazon plans to expand its portfolio by jumping into the semiconductor business where it will now sell its own-branded computer chips and related components to other large firms.
On Wednesday, Annapurna Labs, an Israeli subsidiary of Amazon purchased last year for $350 million, revealed its secret that it has developed a new line of chips called Alpine, which it plans to sell to other manufacturers, data-center operators, and companies that design home equipment. The semiconductor technology used by the company is based on licensed designs from ARM Holdings Plc. and can be used in products such as Wi-Fi routers, data centers, and media-streaming devices.
Founded in 2011 by Avigdor Willenz, Annapurna Labs was initially funded by Mr. Willenz and his contacts. Since acquired by Amazon in January 2015, the startup has shown a decent growth with expanded retail operations. Currently, Amazon Web Services (AWS) cloud-computing unit is also hiring engineers to support the acquired startup and add further to its capabilities.
Amazon is famous for its acquisitions and halting their retail operations as a strategy to focus more on developing technology for internal use. The practice is evident from the acquisition of Kiva Systems ─ a robot developer ─for $775 million in 2012, and then stopped its robot selling business to retailers. Hence, same was assumed in the Annapurna case where people actually thought its technology to be utilized for AWS data centers. The web retailer however, has plans to sell its chips to other retails, which is surprising for many. The company has also declined to comment on the future plans of the acquired…
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