By Liam Mo and Eduardo Baptista

BEIJING, July 23 (Reuters) - U.S. chipmaking giants Intel INTC.O and Advanced Micro Devices AMD.O are signing longer-term purchase commitments with Chinese server customers for data-centre processors as prices surge, two people familiar with the talks said.

The move highlights a broader consequence of the AI boom: demand has spread beyond AI accelerators to memory, networking gear and server processors, giving suppliers greater leverage to seek long-term purchase deals.

AI data centres require not only Nvidia-style graphics processors (GPUs) but also large numbers of central processing units (CPUs) to support servers, storage, networking and inference workloads.

The agreements under discussion typically lock in purchase volumes but not prices, the people said. Most cover about a year of supply, although Intel and AMD have discussed commitments of two years or longer from some customers, one of the people said.

The shift echoes trends in the memory-chip market, where the AI-driven shortage has pushed buyers toward longer-term supply commitments.

The sources declined to be identified because they were not authorised to speak to the media. Intel and AMD did not respond to requests for comment.

The talks mark a shift for server CPUs, which have been easier to obtain than AI accelerators or memory chips.

Tighter CPU supply could raise costs and slow deployment for Chinese cloud providers and internet companies expanding AI services.

Server CPU prices are still climbing in China, with month-on-month increases topping 10% for some products, one of the sources said. Prices of some CPU products have risen more than 40% in China since the start of the year, the source added.

Reuters reported earlier this year that Intel and AMD had notified Chinese customers of lengthy waits for server CPUs, with Intel lead times reaching as long as six months for some products.

The CPU shortage will be among the key topics likely to be addressed on Thursday when Intel reports its quarterly results.

CEO Lip-Bu Tan told analysts in April that demand "continues to run ahead of supply," especially for Xeon server CPUs. He also cited a multi-year deal with Google as one of several long-term contracts Intel signed in the first quarter.

AMD, due to report in early August, already raised its server CPU market forecast to more than $120 billion by 2030, citing strong demand related to agentic AI workloads.

China is one of the world's largest server markets, fuelled by rapid construction of data centre racks, AI computing clusters and national computing infrastructure.

The buildout has intensified competition for Intel and AMD processors, even as Chinese buyers face separate U.S. restrictions on access to the most advanced AI GPUs.