Amazon May Start Selling Its Custom AI Chips to Outside Companies. Should Nvidia Investors Be Worried?
The cloud giant's homegrown AI chips have remained within its data centers. But a new report suggests that may be about to change.
Amazon May Start Selling Its Custom AI Chips to Outside Companies. Should Nvidia Investors Be Worried?
Overview
For years, Amazon (NASDAQ: AMZN) has designed its own artificial intelligence (AI) chips and kept them to itself, renting out the computing power through Amazon Web Services (AWS) rather than selling the chips themselves. A new report, however, suggests that this could be changing. Bloomberg reported that Amazon is in talks to sell its custom Trainium accelerators for use inside other companies' data centers -- a step that would put its chips in direct competition with the graphics processing units (GPUs) from Nvidia (NASDAQ: NVDA) that power most of today's AI.
For Nvidia shareholders, that raises a fair question. Does a new seller of AI chips -- one with Amazon's scale and years of custom-silicon work behind it -- threaten the company that has come to define the market?
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Originally published at www.fool.com.
