Amazon.com Inc. (NASDAQ:AMZN) is preparing to present its new artificial intelligence chips in December. His strategic move aims to leverage Amazon’s significant investments in semiconductors and reduce reliance on Jensen Huang. Nvidia Corp. (NASDAQ:NVDA).
Don’t miss:
What happened: Amazon’s cloud division focuses on developing custom chips to improve data center efficiency and reduce costs for itself and its Amazon Web Services (AWS) customers. The initiative is supported by Annapurna Laboratoriesa chip startup acquired by Amazon in 2015 for $350 million. The upcoming “Trainium 2” AI chips are designed to train large models and are already being tested by companies like Anthropic, Databricks, And Deutsche Telekom, the Financial Times reported Tuesday.
Trending: This Adobe-backed AI marketing startup grew from a $5 million valuation to $85 million working with brands like L’Oréal, Hasbro and Sweetgreen in just three years – here’s how there is a limited time opportunity to invest at $1,000 for just $0.50/share before the close date.
Dave Brown, AWS’ VP of Compute and Network Services stressed the importance of offering an alternative to Nvidia’s dominance in the AI processor market.
“We want to be absolutely the best place to run Nvidia,” he said. “But at the same time, we think it’s healthy to have an alternative.”
Amazon’s capital spending is expected to reach $75 billion in 2024, with much of it dedicated to technology infrastructure, up from $48.4 billion in 2023, reflecting the trend in AI investment among major vendors of cloud.
See also: Maker of $60,000 Foldable Home Has 3 Factory Buildings, More Than 600 Homes Built, and Big Plans to Solve the Housing Problem – you can become an investor for $0.80 per share today.
Why it matters: Amazon’s decision to launch new AI chips is part of a broader strategy to strengthen its position in the AI market. The company is reportedly considering a second multibillion-dollar investment in Getting started with AI Anthropicwhich uses Amazon cloud services for training. This follows an initial $4 billion investment last year, with Amazon encouraging Anthropic to use its chips.
In October, Amazon signed a five-year deal with Databricks to provide cost-effective AI creation capabilitiespositioning its Trainium AI chips as a cheaper alternative to Nvidia’s GPUs.