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The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, U.S., Feb. 14, 2019.

Brendan McDermid/Reuters

Amazon.com Inc said on Tuesday it had designed a more powerful data centre processor chip, as it looks to pose a serious challenge to the domination of market leaders Intel Corp and Advanced Micro Devices Inc.

The AWS Graviton 2 processor, which is estimated to be seven times faster than its previous chip, uses technology from Softbank Group Corp-owned Arm Holdings.

Reuters reported last week that Amazon was looking to design a data centre processor chip to power its cloud unit.

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Data centre processor chips are used in cloud computing, an area that is fast emerging as a big business.

With the new chip, Amazon is looking to reduce its reliance on processors made by Intel and AMD to power its money-spinning cloud business, AWS.

Intel currently controls more than 90% of the server processor market, with AMD controlling most of the remainder.

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