Amazon launches new AI chip to challenge Nvidia's dominance

According to e-commerce giant Amazon, servers equipped with Trainium3 are four times faster and more energy efficient than Nvidia's previous generation chips.

According to a VNA reporter in New York, on December 2, the US e-commerce group Amazon launched a new line of artificial intelligence (AI) chips, marking the latest move by the technology giant to challenge the world's leading chip maker Nvidia by offering customized chips that can handle some AI tasks at a lower cost.

The new chip is called Trainium3. Servers equipped with this chip are four times faster and more energy efficient than Nvidia's previous generation of chips.

Speaking at the company's annual re:Invent event the same day, Amazon Web Services chief executive Matt Garman said: "Trainium is now a multi-billion dollar business and is growing very rapidly."

The tech giant also said it is developing a next-generation AI chip, the Trainium4, which will be designed to work with Nvidia’s NVLink Fusion networking technology – a key technology used to connect chips in AI server racks.

Amazon is one of many Nvidia customers that has developed its own AI chips. Earlier in November, Google also announced its latest AI chip line, the 7th generation TPU Ironwood.

Google is reportedly in talks to supply tech company Meta (META) with billions of dollars worth of TPUs, adding to its recent multi-billion dollar deal with AI company Anthropic.

In addition to Google, Microsoft is also looking to rely on its own custom chips instead of Nvidia's, despite the company being behind in developing its own chips.

Over the past year, Amazon has been aggressively expanding its custom AI hardware, recently completing a massive AI data center project called Project Rainier.

AI developer and OpenAI rival Anthropic plans to use 1 million custom Amazon chips from this project and the group's other data centers by the end of 2025.

The main advantage of the chip developed by Amazon is its price. According to analysts, this chip is much cheaper than Nvidia's chip and AI developers using Amazon's chip can save 30%-40% of the cost./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/amazon-ra-mat-chip-ai-moi-thach-thuc-the-thong-tri-cua-nvidia-post1080746.vnp