Amazon Develops AI Chips in Austin to Rival Nvidia, Promises Up to 50% Cost Savings

Jul 25, 2024, 03:50 PM

Amazon is actively developing its own AI chips to compete with Nvidia, aiming to create cheaper and faster alternatives. The new chips, Trainium and Inferentia, are expected to help AWS customers process data more cost-effectively, potentially cutting costs by up to 50%. This initiative is part of Amazon's strategy to reduce its reliance on Nvidia's expensive chips, often referred to as the 'Nvidia tax.' The development is taking place in Amazon's chip lab in Austin, Texas, where engineers are working on a closely guarded new server design. Amazon's efforts are part of a broader trend, with other tech giants like Microsoft and Alphabet also developing their own AI processors.