Imagine you’re a cloud service customer, and you just got a deal that’s hard to pass up. Amazon Web Services (AWS) is offering a discount on its Trainium chip-based servers, making them cheaper than those using NVIDIA chips.
AWS is giving this deal to customers who have been using its cloud services for a while and are now switching to servers with AI chips similar to NVIDIA’s H100, but at a quarter of the price. That’s a significant cut, making AWS’s option much more attractive.
To understand why AWS is doing this, let’s take a step back. Initially, AWS used NVIDIA, Intel, and AMD chips for its AI services. Then, it released its own Trainium chip, which needed software adjustments to work at full capacity.
This move by AWS comes as the AI chip market gets more competitive. Tech giants are developing their own AI chips to challenge NVIDIA’s dominance. NVIDIA is also competing with Microsoft and Apple for the top spot in the market.
For more on this story, you can check out Yahoo Finance.