Amazon's Strive to Level the AI Field with Custom AWS Chips

NNicholas August 12, 2023 3:51 PM

Amazon is in a race against Microsoft and Google in the generative AI market, utilizing custom AWS chips, Inferentia and Trainium, to offer alternatives to Nvidia GPUs. However, it faces the challenge of catching up with competitors who have moved faster and invested heavily in the AI boom.

Amazon's custom chips offer GPU alternative

Amazon is working rigorously behind closed doors in Austin, Texas, to design two types of microchips, Inferentia and Trainium. These chips aim to offer AWS customers a cost-effective and efficient route to train their large language models. With Nvidia GPUs becoming increasingly difficult and expensive to procure, Amazon's own chips could provide an effective alternative. This move could solidify Amazon's position in the AI market by meeting the rising demand for chips suitable for generative AI training.

Amazon's unique approach through its custom silicon could eventually give it an advantage in the competitive generative AI market. The company's custom chips, Inferentia and Trainium, have been designed specifically for training and accelerating generative AI models. This technical capability differentiates Amazon from other tech giants like Microsoft, which lacks these custom chips, potentially making Amazon's silicon the 'secret weapon' in this race.

Leveraging cloud dominance for AI advancement

Despite the challenges in the AI field, Amazon's position as a dominant force in the cloud market could be a significant advantage. With millions of AWS customers already running their applications and storing their data on Amazon's servers, the company has a ready-made customer base to apply generative AI solutions. This existing install base could be a significant driving factor for Amazon to quickly develop and implement generative AI applications.

AWS is not merely focusing on hardware improvements but is also expanding its portfolio of developer tools centered around generative AI. Bedrock is one such service that offers developers enhanced software using generative AI. In addition, AWS HealthScribe, another recent offering, employs generative AI to assist doctors in preparing patient visit summaries. These tools, among others, help Amazon to provide comprehensive AI solutions to its customers.

AI's impact on AWS business

The influence of AI on AWS's business operations is considerable. As stated by Amazon CEO Andy Jassy, a substantial portion of AWS's business revenue is driven by AI and the numerous machine learning services it offers. Clients such as Philips, 3M, Old Mutual, and HSBC are just a few examples of customers benefiting from AWS's AI-driven services. This AI integration within business operations underscores the potential of AI in shaping AWS's future growth trajectory.

More articles

Also read

Here are some interesting articles on other sites from our network.