AWS’ custom chip strategy is cutting into Nvidia’s AI dominance
Amazon Web Services will announce an update in the Graviton4 chip containing 600 Gigabytes in a second of the network bandwidth, which the company calls the highest bid in the overall cloud.
Ali Sai, a distinguished engineer in AWS, compared speed to a machine that reads 100 music CDs per second.
Graviton4, a central processing unit or CPU, is one of the many chip products from Amazon’s Annapurna Labs in Austin, Texas. Chip is a gain for the company’s special strategy and resisting traditional semiconductor players Intel And AMD.
But the real war Nvidia In the field of artificial intelligence infrastructure.
Last December at AWS’s Re: Invent 2024 conference, the company announced Rainier, an AI Super Computer project built for the initial anthropic. AWS put $ 8 billion in anthropic support.
AWS Customer and Project Engineering Senior Director Gadi Hutt said Amazon wants to reduce AI training costs and provide an alternative to NVIDIA’s expensive graphic processing units or GPUs.
Anthropic’s Claude Opus 4 AI model was released in the Trayium2 GPUs, according to AWS, and Project Rainier, more than half a million chips – traditionally going to Nvidia.
Hutt said that Nvidia is a higher performance chip than Blackwell’s Trayium2, but the AWS chip offers better cost performance.
“Trayium3 comes this year and doubles the performance of Trayium2, and the energy will save 50%more,” he said.
According to AWS ‘Annapurna Labs Engineering Director Rami Sinno, the demand for these chips is already exceeding the supply.
“Our supply is very large, but every service we build has a customer connected to it,” he said.
With Graviton4’s upgrade on the horizon and Project Rainier’s Trainum Chips, Amazon shows the passion of controlling all AI infrastructure piles from network to training and extraction.
And as the larger AI models like Claude 4 prove that they can successfully train on non-NVIDIA hardware, the question is that AWS can not compete with the chip giant-not to get a market share.
According to an AWS spokesman, the version program for Graviton4 update will be provided by the end of June.
