Amazon Accelerates In-House AI Chip Developments, Up To 50% Higher Performance & Value Compared To NVIDIA

Amazon has stepped up the gears in developing its AI chips, claiming that it expects to close the performance gap between NVIDIA and reduce its reliance on them.

It looks like every major tech firm in the markets is rushing towards developing its own AI solutions, whether in the form of dedicated AI chips or even large-scale clusters. Given that the need for computer power is drastically increasing day by day, companies are now focused on creating their in-house AI products to cater to the demand as well as reducing their reliance on suppliers, which is what will make their business sustainable in the long run.

Along with companies such as OpenAI, Microsoft, and Google, Amazon is now determined to complete the development of its own set of chips.

In a report by Reuters, it is disclosed that Amazon is racing to develop its AI processors, and the primary reason behind it is to reduce its reliance on NVIDIA, along with cutting down the financial costs associated with acquiring Team Green's products, through creating a cheap and effective solution.

Interestingly, Amazon already has a custom chip solution called Graviton, a family of custom-built ARM-based processors designed to cater to the firm's cloud computing segment, AWS. It isn't entirely an AI-focused chip; rather, it provides Amazon with non-AI computing capabilities. Given that Graviton is still under service, it does show that Amazon has experience building its chips. Hence, its AI venture won't be a difficult task.

In terms of specifics of the AI chips, it is said that Amazon is going to release them under the Trainium and Inferentia naming schemes, with both of them designed for different workloads. Amazon's Vice President of Compute and Networking at AWS, David Brown, revealed that the upcoming AI chips will offer 40-50% better value and performance compared to NVIDIA's alternatives, showing that the chips will surely be capable ones and will contribute to the large demand of power desired by the firm.