from Amazon (AMZN, Financial data) Amazon Web Services is reportedly finalizing a $475 million deal to supply IBM (IBM, Financial data) with Nvidia (NVDA, Financial data) processors on the cloud for artificial intelligence applications, Business Insider reported.
The five-year agreement will provide IBM with access to AWS’ EC2 servers, powered by Nvidia GPUs, allowing IBM to expand its AI model training capability. An internal Amazon document referenced in Business Insider’s report details IBM’s possible growing use of EC2 for artificial intelligence research.
This partnership emphasizes the strategic focus of hyperscale providers such as AWS, which has a strong commitment to building data center capacity, and the growing demand for Nvidia GPUs.
IBM revealed plans earlier this year to combine Amazon SageMaker with its WatsonX artificial intelligence and analytics platform. Our collaboration with IBM will bring even more generative AI solutions to our joint customers, said Ankur Mehrotra, general manager of Amazon SageMaker at AWS.
AWS also unveiled its own artificial intelligence processors called Trainium and Inferentia. Last month, in an unrelated development, AWS secured a five-year contract with Databricks allowing the data industry to use Amazon’s Trainium processors.
AWS continues to grow rapidly; in the third quarter of 2024, it earned $27.45 billion, an increase of 19% from the previous year.
Additionally, Amazon is experimenting with new models in the food industry to combine its Whole Foods Market and Amazon Fresh outlets on a single delivery system. Currently controlled by physical stores, this approach aims to increase Amazon’s dominance in the $1.5 trillion US food sector.
Smart glasses intended to help delivery workers by providing directional steering and hands-free handling of packages are being developed by Amazon. Codenamed “Amelia,” the project is in the experimental stage and is tackling issues like data collection and battery life.
Using autonomous robots like Proteus, which negotiate facilities autonomously, and AI products like Rufus, a sales assistant, and the Vapr system for delivery drivers, the company is also improving its warehouse operations. These developments aim to increase delivery speed and efficiency.
This article first appeared on GuruFocus.