Amazon to Rival Nvidia AI Chips with 'Trainium 2' Trainium 2 is undergoing testing with other players, including Anthropic, another Amazon backed start-up

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Wiki Media Commons

To reduce its reliance on chip giant Nvidia, Amazon is preparing to launch its next generation of artificial intelligence (AI) chip – Trainium 2.

In Q4 2023, Nvidia held 80 per cent of the graphics processing unit (GPU) market share.

"We want to be absolutely the best place to run Nvidia. But at the same time, we think it's healthy to have an alternative," Dave Brown, vice president of compute and networking services, AWS was quoted as saying. According to Financial Times, Amazon aims to lower operational costs for both Amazon and its AWS customers by using its own chips.

Report states that through its cloud computing division, Amazon Web Services (AWS), the E-commerce giant is heavily investing in custom-designed chips to enhance the efficiency of its vast network of data centres. Acquired by Amazon in 2015 for USD 350 million, Israeli chip start-up Annapurna Labs is leading this innovation. The chip is expected to be unveiled next month as part of Amazon's lineup of AI chips designed for training large-scale AI models.

Trainium 2 is undergoing testing with other players, including Anthropic, another Amazon backed start-up.

Amazon notes that its "Inferentia" AI chips, designed for generating responses from AI models, are already 40 per cent cheaper to operate than comparable solutions.

The chip development comes as AWS announces offering free computing power to researchers who utilise its custom-designed AI chips. It will provide researchers with credits worth an estimated USD 110 million to access its cloud data centres and utilise "Trainium," its specialised chip for developing AI models.

Entrepreneur Staff

Entrepreneur Staff

Editor

For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.
Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Science & Technology

This AI is the Key to Unlocking Explosive Sales Growth in 2025

Tired of the hustle? Discover a free, hidden AI from Google that helped me double sales and triple leads in a month. Learn how this tool can analyze campaigns and uncover insights most marketers miss.

Marketing

5 Ways ChatGPT Will Impact Digital Marketing

ChatGPT is creating ripples across the digital landscape right now. Here are five ways it can benefit your ads, campaigns and marketing strategies.

Science & Technology

How Can Marketers Use ChatGPT? Here Are the Top 11 Uses.

With the recent developments in AI and the popularity of ChatGPT, you may want to integrate AI into your marketing practices. Find out how.

Business Ideas

Is Your Business Healthy? Why Every Entrepreneur Needs To Do These 3 Checkups Every Year

You can't plan for the new year until you complete these checkups.

Franchise

KFC Is Launching a Chicken Tenders-Focused Concept Called Saucy — Here's When and Where It Opens

The chicken chain is making a strategic pivot towards the growing demand for customizable, sauce-heavy meals.