Amazon is seeking to carve out its niche in the AI chip market. Amazon Web Services (AWS) division announced Tuesday the launch of a new AI chip, the latest move by a tech giant to challenge Nvidia, the current leader in that market. Technology companies are seeking to develop cheaper custom chips that can handle some AI tasks.
On your annual occasion Re-AWS: Invented 2025the company founded by Jeff Bezos claimed that its servers equipped with Trainium 3 chips are four times faster and more power efficient than those with the previous generation chips.
The tech giant is one of Nvidia’s clients developing semiconductors for artificial intelligence, in what may be the biggest competitive threat to the leading chipmaker, which is currently the world’s largest company by market value.
In this sense, Alphabet presented its latest AI chip a few days ago, the seventh generation Ironwood TPU (Tensor Processing Unit). Google’s parent company, which is in talks to supply Meta with billions of dollars from its TPUs, has also struck a multi-million dollar deal with Anthropic.
In the same vein, Microsoft is also aiming to eventually use its own custom chips instead of Nvidia’s.
Regardless, Amazon, which has been developing its own AI training chips for years, has previewed the next product in its AI training product roadmap, Trainium4, which is already in development and will be compatible with Nvidia’s chips.
Other agreements with Sony and Adobe
As part of this technology offensive, Sony Group announced that it is using the full suite of AI services from AWS to accelerate enterprise use of this revolutionary technology, and build the Sony Interaction platform, in order to create a deeper connection between fans and content creators.
This collaboration, according to the Japanese group, allows Sony to introduce Kando, a Japanese term that refers to a deep emotional connection or experience, across its wide product range, which includes electronics, video games, music, films and animation.
Additionally, Adobe and Amazon announced that they are deepening their collaboration on product innovation, new business models, and increased customer engagement. This collaboration leverages AWS infrastructure to help their teams innovate faster, from training generative AI models to deploying AI agents, they explained in a statement.
Strategic betting
Amazon’s strategic commitment to this revolutionary technology is worth millions of dollars. North American giant of electronic commerce and services clouds Last week, it announced that it would invest up to $50 billion in expanding its ability to provide artificial intelligence infrastructure and high-performance computing services to various US public departments.
Among these projects, Amazon Web Services plans to begin building about 1.3 gigawatts of additional capacity in data centers designed for federal agencies next year. One gigawatt of computing power is roughly enough to power about 750,000 homes on average.
In this announcement, AWS explained that it will provide US public agencies with Amazon’s family of AI tools, one of its partners Anthropic, and chips from both Nvidia and Amazon’s own in-house chip manufacturing division.