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Amazon Unveils New AI Chip, Deepens Ties with Nvidia

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BNN Correspondents
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Amazon Unveils New AI Chip, Deepens Ties with Nvidia

Amazon has announced the development of a new artificial intelligence chip, deepening its ties with tech giant Nvidia. The latest move from the multinational technology company signifies a significant stride in the realm of AI and machine learning, potentially leading to advancements in various Amazon services, including its renowned cloud computing platform, Amazon Web Services (AWS).

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Amazon's New AI Chip

Announced by the AWS cloud unit, Amazon's new Trainium2 chip is designed to build and run artificial intelligence applications. The chip boasts four times the speed and double the energy efficiency of its predecessor. The Trainium2 chip is built specifically for training AI models, including those that power AI chatbots. With the ability to scale up to 100,000 chips in AWS' EC2 UltraCluster product, it delivers 65 exaflops of compute.

Collaboration with Nvidia

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A key part of Amazon's announcement is its plan to offer access to Nvidia's latest H200 AI graphics processing units. This collaboration signals a deeper association between the two tech giants, positioning Amazon to leverage Nvidia's expertise in AI and GPU technology. More than 16,000 Nvidia GH200 Grace Hopper Superchips will be operated by AWS. However, the release dates for virtual machine instances with Nvidia H200 chips are yet to be announced.

Amazon's Graviton4 Processor

Alongside the Trainium2 chip, Amazon has also unveiled its general-purpose Graviton4 processor, based on Arm architecture. This processor consumes less energy than chips from Intel or AMD. The Graviton4 provides up to 30% better compute performance, 50% more cores, and 75% more memory bandwidth than the previous generation. Over 50,000 AWS customers are already utilizing Graviton chips. Testing for Graviton4 virtual machine instances is already underway, with commercial availability expected in the coming months.

Implications for the AI Market

The unveiling of these technological advancements comes as competition in the cloud computing and AI market intensifies, particularly between Amazon and Microsoft. The development of the Trainium2 chip, coupled with Amazon's partnership with Nvidia, could potentially bolster Amazon's standing in the market as a leading provider of AI solutions. Beyond augmenting its own services, this move could lead to the development of new AI-driven products and services, further solidifying Amazon's market position.

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