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AWS exec explains why Nvidia is not a competitor

Dec 06, 2024 - businessinsider.com
Amazon Web Services (AWS) has launched a new line of AI chips, Trainium 2, which directly compete with Nvidia's GPUs. However, Gadi Hutt, senior director of customer and product engineering at AWS's chip designing subsidiary, Annapurna Labs, insists that the goal is not to dethrone Nvidia but to provide customers with a lower-cost option. The new chips are part of AWS's Project Rainier, a supercomputer cluster, and are expected to cost around 40% less than Nvidia's GPUs.

Despite the competition, Hutt maintains that Nvidia remains a crucial partner for AWS and that the company's GPUs will continue to dominate the market. He also discussed AWS's partnerships with Intel, Anthropic, and AMD, emphasizing that AWS will continue to work with Intel due to high customer demand for its server chips. AWS is also considering selling AMD's new AI chips, but this will depend on customer demand.

Key takeaways:

  • AWS has launched new AI chips, including its most advanced AI chip, Trainium 2, which competes with Nvidia's GPUs but at a lower cost.
  • Despite the competition, AWS insists its goal is not to dethrone Nvidia but to provide more customer choice and grow the overall size of the market.
  • AWS is also partnering with companies like Intel, Anthropic, and AMD, and is open to selling AMD's AI chips if there is strong customer demand.
  • AWS's new supercomputer cluster, Project Rainier, uses the new AI chips and will have Anthropic as its first customer.
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