Amazon Set To Develop AI Chips Cheaper Than Nvidia

The e-commerce platform Amazon is on a mission to acquire through the chip venture rooting on its process to dwindle the dependence on Nvidia chips and tax that currently provides AI cloud business at the company's web services

Amazon Edited by Updated: Jul 26, 2024, 11:35 am
Amazon Set To Develop AI Chips Cheaper Than Nvidia

The company has been trying to discover affordable alternatives as the customers demand more viable options to compete with Nvidia.

In Austin, Texas on Friday, nearly half of the engineers in Amazon’s chip lab held a meticulously designed new server through its paces which was packed with the company’s AI chips. According to Amazon executive Rami Sinno, this chip can contend with the market leader Nvidia (the company that provides AI solutions) and has progressed to develop cost-effectively.

The e-commerce platform Amazon is on a mission to acquire through the chip venture rooting on its process to dwindle the dependence on Nvidia chips and tax that currently provides AI cloud business at the company’s web services. The company intends to aid customers process a large number of data most cheaply and completing elusive tasks in the simplest form.

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The company has been trying to discover affordable alternatives as the customers demand more viable options to compete with Nvidia. The chip development in Amazon web services was incipient and has already brought in demand yet the company’s machines that perform independently under heavy use chips computing non-AI are underway on processing, which started a year back and is already on its fourth generation. The new designs include Inferentia and Trainium.

This could benefit the company and its customers that the chips could come under half of the expense of Nvidia chips in the running model offering up to 40 percent, and 50 percent of improved performance. Earlier, this month Amazon started a new initiative introducing a new series of iterative processes on the incremental refinement of several of its artificial intelligence products as it seeks to stay ahead of rivals amid continued investor excitement over the technology, according to Reuters. 

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Since the majority of the giant companies like Apple, Microsoft and Google combat to keep pace in the AI race, the retailer attempts to counter the rivals accumulating Gen AI in the fray. The company announced its vision and improvements at the New York conference and started developing it in a cost-effective way.

(With inputs from The Indian Express)