Amazon's AWS cloud computing division already designs several chips for use in its data centers and has hired Intel to package at least one version.

After hanging on the ropes for much of August and September, Intel (INTC -3.26%) is suddenly having a banner week. The stock jumped yesterday after the company secured $3 billion

Intel’s partnership with AWS is part of the chipmaker’s attempt to play catch-up. The new deal, along with a $3 billion grant from the US government to boost domestic chip making and make chips for the US military, “demonstrates the continued progress we are making to build a world-class foundry business,” Intel said in the statement.