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Amazon Web Services (NASDAQ:AMZN) successful training results with its custom artificial intelligence chips might help the company gain market share in a realm currently dominated by Nvidia (NASDAQ:NVDA), and to a lesser extent by Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC), according to CNBC.
AWS plans to announce an update soon to its Graviton4 chip that provides 600 gigabits per second of network bandwidth, the report said. The CPU was developed by Amazon’s Annapurna Labs. A release date for the updated Graviton4 is expected by the end of this month.
AWS is also set to release its Trainium3 GPU later this year. AI startup Anthropic, which is backed by Amazon, launched its Claude Opus 4 model on the Trainium2.
AWS Senior Director for Customer and Product Engineering Gadi Hutt told CNBC that although Nvidia’s Blackwell GPU is more powerful, the Trainium2 chip offers better cost performance. The Trainium3 is expected to be 50% more energy efficient than the Trainium2.
Nvidia has dominated market share due to a combination of its more powerful processors and its proprietary programming language, CUDA. Developers switching to Trainium from Nvidia might have to redo software coding and ensure AI models still produce similar results on the new chips.