Deep Tide TechFlow message: On July 23, Reuters reported that, driven by demand for AI data center construction, Intel and AMD are in talks with Chinese server customers to sign server CPU purchase agreements with longer terms; some agreements exceed two years to lock in procurement volumes, but prices are typically not fixed.

The report said that AI infrastructure demand has expanded from graphics processing units to areas including server CPUs, storage, network equipment, and memory. In China, the price increases for some server CPU products within the year have already exceeded 40%, and some products have had month-over-month price increases of more than 10%. In addition, delivery lead times for some Intel Xeon server CPUs have been extended to as long as six months.