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Amazon is taking on Nvidia with an AI freebie

Nov 12, 2024 - qz.com
Amazon Web Services (AWS) is challenging Nvidia's dominance in the artificial intelligence (AI) chip market by offering AI researchers credits worth $110 million to use its custom AI chip, Trainium, in its cloud data centers. The Trainium chip, used for training AI models, is an in-house competitor to AI chips from Nvidia and Advanced Micro Devices. AWS is making up to 40,000 first-generation Trainium chips available for a program focused on university-led research in generative AI.

Despite preparations to roll out the next-generation of its in-house AI chips, Amazon is unlikely to disrupt Nvidia's dominance until Nvidia’s CUDA software is no longer the control point of AI training, according to Richard Windsor, founder of research firm Radio Free Mobile. Amazon is also reportedly discussing a multi-billion dollar investment in AI startup, Anthropic, and is encouraging the startup to use servers powered by its in-house custom chips.

Key takeaways:

  • Amazon Web Services is challenging Nvidia's dominance in AI chips by offering AI researchers credits worth $110 million to use its custom AI chip, Trainium, in its cloud data centers.
  • Amazon is making up to 40,000 first-generation Trainium chips available for a program focused on university-led research in generative AI.
  • Despite Amazon's efforts, experts believe that Amazon's AI chips will not significantly impact Nvidia's dominance unless Nvidia's CUDA software is no longer the control point of AI training.
  • Amazon is reportedly in talks for a multi-billion dollar investment in AI startup, Anthropic, and is asking the company to use servers powered by its in-house custom chips.
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