Intel’s Best Customer in 2013

October 27, 2008

I am not sure whether to believe this or dismiss it. You will have to judge for yourself. The Stackelberg Follower reported on October 27, 2008, here that Google will buy one third of Intel’s processors. You can read “Economics of Intel” at http://stackelbergfollower.blogspot.com/2008/10/economics-of-intel.html. Other interesting items from this Stackelberg Follower post were:

  • AMD buys expertise from IBM
  • AMD’s last profitable quarters were directly attributable to chip orders from the Google
  • Amazon and Google buy “basic products”. Google refers to these as commodity chips.

One of my sources told me that Google had in early 2007 about 950,000 servers. These machines were allocated to different tasks. If the Google buys one third of Intel’s processors in 2013, my question is, “How many CPUs will Intel make?” The Stackelberg number sounds impressive assuming Intel does not make nine chips in 2013.

Stephen Arnold, October 31, 2008

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