Intel and AMD are exploring longer-term CPU purchase commitments as China’s growing AI data-centre buildout pushes demand beyond GPUs and accelerators.
Intel and Advanced Micro Devices (AMD) are discussing longer-term purchase commitments with Chinese server customers as rising demand from artificial intelligence (AI) data centres drives up server processor prices and puts pressure on supplies.
The discussions reflect a broader impact of the AI infrastructure boom. While demand for advanced AI accelerators has attracted much of the attention, data-centre operators are also competing for memory, networking equipment, storage and server central processing units (CPUs).
AI data centres use large numbers of CPUs alongside graphics processing units (GPUs). CPUs support a range of functions, including server operations, storage, networking and AI inference workloads.
According to people familiar with the talks, the agreements under discussion would generally commit customers to purchasing specific volumes without fixing prices. Most deals would cover around one year of supply, although Intel and AMD have also discussed commitments lasting two years or longer with some customers.
The development represents a shift in the server CPU market, where processors have traditionally been easier to obtain than AI accelerators and memory chips. However, growing demand from Chinese cloud providers and internet companies expanding their AI infrastructure is now putting greater pressure on supplies.
Prices of some server CPUs in China have reportedly increased by more than 10% month-on-month, while certain products have become over 40% more expensive since the beginning of the year. Intel and AMD had earlier warned Chinese customers of extended waiting periods, with lead times for some Intel server CPUs reaching up to six months.
Intel CEO Lip-Bu Tan previously said demand for Xeon server processors was running ahead of supply. The company has also signed several long-term contracts, including a multi-year agreement with Google.
AMD has forecast the server CPU market to exceed $120 billion by 2030, citing strong demand from AI workloads, including agentic AI.
China remains one of the world’s largest server markets, driven by data-centre construction, AI computing clusters and national computing infrastructure. The growing buildout is intensifying competition for Intel and AMD processors, even as U.S. restrictions limit Chinese access to some advanced AI GPUs.
