Intel and Amazon's AWS said on Monday they would expand their collaboration, including a co-investment in custom chip designs, under a multi-year, multi-billion-dollar framework.

Intel's shares were up 9% in extended trading.

As part of the collaboration, the chipmaker will produce an AI fabric chip for AWS on Intel 18A, its most advanced process node.

The company also said it plans to establish Intel Foundry as an independent subsidiary of Intel.