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Amazon Expands AI Capabilities with New Custom Chips

• Posted on November 13, 2024
• Investing
• By admin

Amazon has announced the launch of new AI chips, developed by its subsidiary Annapurna Labs, to reduce dependence on Nvidia and improve data center efficiency for AWS customers. Acquired by Amazon in 2015, Annapurna Labs designed these chips to cut costs for AWS clients, with early results showing up to 40% savings when using Inferentia (specialized AI chips).

Amazon's 2024 tech investment, totaling $75 billion, includes a strong focus on these custom chips, positioning the company to challenge Nvidia’s dominance in AI hardware. By offering increased control and efficiency for cloud providers, Amazon aims to secure a competitive edge in the cloud infrastructure market.