Amazon has agreed to buy Annapurna Labs, an Israeli chipmaker, in a bid to help the online retail giant bolster its cloud computing services in Israel.
The Seattle-based company, which recently pledged to power its data centres with wind, is expected to pay about $350m for the transaction, according to a report by Calcalist, a local Israeli newspaper.
It added that the proposal includes a deal by Amazon to open a research and development centre in Israel.
Annapurna, based in Yoqneam, was founded in 2011 by Avigdor Willenz, who founded a chip-design company Galileo Technologies, which was sold to Marvell Technology for $2.7bn in 2000.
The startup has disclosed little details about its operations, but Calcalist reported that it develops microprocessors, which are designed to provide fast data traffic for low-powered servers.
The news comes after Dropbox said it would buy CloudOnm, an Isreali startup that provides document editing services, earlier this week.