Exclusive-Intel, AMD sign long-term server CPU deals with Chinese clients as prices surge, sources say

Reuters reports that Intel and AMD are negotiating longer-term server CPU supply commitments with Chinese customers as data-center processor prices climb sharply. The talks reflect how the AI boom is tightening supply beyond GPUs into CPUs, memory and networking gear, giving chip suppliers more pricing power. Customers are reportedly being asked to commit to volumes, often for about a year and in some cases two years or longer, which could help Intel and AMD secure demand visibility. For Chinese cloud and internet firms, tighter CPU availability may increase costs and slow AI infrastructure deployment. The article also notes that in China some server CPU prices are rising more than 10% month-on-month and more than 40% since the start of the year. The development is positive for chipmakers’ revenue and bargaining power, but it highlights continued supply constraints across the AI infrastructure chain.