Amazon and Databricks Sign Five-Year Deal for AI Chips Using Trainium Technology, Targeting Cost Reductions and Increased Nvidia GPU Usage

Oct 15, 2024, 12:19 PM

Amazon ($AMZN) has entered into a five-year agreement with Databricks to utilize its Trainium AI chips for various AI services. This partnership aims to assist businesses in building and customizing their own AI capabilities, potentially leading to significant cost reductions. Databricks will also increase its usage of Nvidia GPUs through Amazon Web Services (AWS). The deal highlights Databricks' growing reliance on AWS, which it has identified as its fastest-growing cloud partner. Both companies have not disclosed specific financial terms of the agreement.