Amazon Developing Custom AI Chips to Rival NVIDIA

Amazon is reportedly developing its own AI processors to reduce reliance on NVIDIA and cut costs, potentially disrupting the AI chip market.

Amazon Developing Custom AI Chips to Rival NVIDIA

Amazon is reportedly developing custom artificial intelligence (AI) chips to reduce its dependence on NVIDIA and lower costs, according to the Financial Times. This move is part of a broader trend in big tech to lessen reliance on NVIDIA's dominant and expensive GPUs. Amazon's chip design subsidiary, Annapurna Labs, acquired in 2015, is leading the effort. Annapurna already designs Amazon's Graviton processors for data centers, and their Trainium chips are designed for large language models. Trainium2, unveiled in 2023, is reportedly used by Anthropic, Amazon's AI partner and provider of the Claude AI model. Reducing Costs and Dependence Developing in-house AI chips allows Amazon to reduce both its reliance on NVIDIA and its expenses. NVIDIA's GPUs, while market-leading, are in high demand and come at a premium price. Amazon's strategy mirrors that of other tech giants like Google (with its Tensor Processing Units) and Meta (with its Meta Training and Inferenc…

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