Amazon Developing Custom AI Processors To Compete With NVIDIA

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According to a report from the Financial Times, Amazon is developing custom artificial intelligence chips to reduce its dependence on NVIDIA. The firm has already developed a variety of in-house processors to run data center workloads, and the latest push is part of its investment in a chip design startup in 2015. Amazon is expected to shed more light on its custom AI processors next month as part of announcements covering the firm’s Trainium chip lineup.

These chips have been developed by Amazon’s Annapurna Labs, and they are being used by Microsoft-backed OpenAI’s rival Anthropic. Anthropic is Amazon’s primary AI partner, and it provides the e-commerce and cloud computing giant with access to the Claude foundational AI model.

Amazon Pushes For Custom AI Chips To Lower Costs & Dependence On NVIDIA

Today’s report is just one of many that indicate a push in big tech to reduce reliance on NVIDIA for the most powerful artificial intelligence processors. NVIDIA’s GPUs are market leaders and top performers in running AI workloads. Consequently, high demand and constrained supply have made them one of the most highly sought-after and expensive products in the world.

For Amazon, developing in-house AI chips is an effort to reduce dependence on NVIDIA’s products and simultaneously reduce costs, reports the Financial Times. The firm is not inexperienced when it comes to developing custom chips. Its…