Amazon to Sell AI Chips, Competing with Nvidia
Amazon (NASDAQ: AMZN) is reportedly in early discussions to sell its Trainium AI chips to external customers, expanding beyond its own data centers. This initiative follows CEO Andy Jassy’s indications that the company aims to commercialize its AI chip technology. The AI chip unit could have an annual run rate of $50 billion and is growing at triple-digit rates year-over-year, positioning Amazon as a significant contender in the AI chip market.
Nvidia (NASDAQ: NVDA), currently a major supplier of AI chips, may face increased competition but continues to maintain robust partnerships with Amazon. Although Amazon is developing in-house solutions to reduce reliance on Nvidia, Jassy emphasized the importance of their ongoing collaboration. Additionally, Nvidia is expected to generate $20 billion in stand-alone CPU revenue by year-end, capitalizing on the expanding AI market.
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