Jakarta, INTI - Amazon.com Inc. (Amazon) is exploring selling its artificial intelligence (AI) chips for use in other companies’ data centers. This move is part of Amazon’s expansion strategy to challenge Nvidia’s dominance in the AI chip market.
Amazon's executive in the AI division, Peter DeSantis, revealed that the company has begun talks with several potential customers, though he did not disclose the identities of the companies involved.
"We believe AI infrastructure is evolving rapidly. We are always looking for ways to serve more customers," said DeSantis.
Since its introduction in 2020, Amazon's AI accelerator, Trainium, has attracted several major customers, including OpenAI, Anthropic PBC, and Uber Technologies Inc., which utilize the hardware through Amazon Web Services (AWS).
In April, Amazon stated that Trainium had generated more than US$225 billion in committed revenue. During the same period, Amazon CEO Andy Jassy stated in a letter to shareholders that the company was highly likely to sell its AI chips to a third party. This move was part of a broader strategy to strengthen Amazon's position in the AI industry.
Locally Managed Computing System
Like other major cloud service providers, Amazon is also developing alternatives to Nvidia's graphics processing units (GPUs), particularly in light of the increased demand for AI computing. The AI boom has not only driven demand for cloud services but has also fueled the emergence of specialized AI cloud providers and the growing need for sovereign cloud services, particularly in Europe and other regions that require data processing and storage within the country.
According to DeSantis, Amazon's move to offer Trainium outside of AWS was also driven by the growing need for locally managed computing capacity, particularly outside the United States. However, DeSantis emphasized that the European trend of reducing reliance on US-based technology has not impacted AWS's business. He made this statement at the VivaTech conference in France.
He also revealed that the third generation of Trainium, which launched earlier this year, has almost completely sold out. Meanwhile, the fourth version, scheduled to launch next year, is said to have garnered high market interest.
In addition to Trainium, DeSantis also highlighted the growth of the Graviton chip, Amazon's general-purpose processor, which is now being used by Meta Platforms Inc. In the past three years, Amazon has added more Graviton chips to its computing infrastructure than any other type of chip.
Conclusion
Amazon is considering selling its Trainium AI chips directly to other companies to expand its market reach and challenge Nvidia's dominance in the AI chip industry. This move is driven by the rapid growth in AI infrastructure needs and the growing demand for locally managed computing resources, particularly outside the United States. Trainium has been deployed by several large companies through Amazon Web Services (AWS), generating over US$225 billion in committed revenue.
Read more: BRIN Researchers Develop Intelligent Transportation Systems by Integrating Sensor Information Technology and AI