Intel, AMD sign year-long China server CPU deals as prices jump 40%

Intel and AMD have signed long-term server CPU supply agreements with Chinese customers guaranteeing purchase volumes for about a year without fixing prices, Tom's Hardware reports, citing Reuters. Some commitments reportedly run two years or longer, amid server CPU prices that have jumped over 40%.

Why it matters: This extends AI-driven hardware scarcity beyond GPUs and memory into server CPUs, echoing the memory-chip shortage already pushing up car prices. Locking in volume without fixing price shifts inflation risk onto buyers, a sign suppliers currently hold the leverage.