Amazon develops AI chips to reduce reliance on Nvidia and cut costs

Amazon is developing its own AI chips to reduce reliance on Nvidia. The company aims to enhance the efficiency of its data centers and lower operational costs. This initiative follows significant investments in semiconductor technology. Amazon's Annapurna Labs is working on the "Trainium 2" AI chip, designed for training AI models. The company is also developing the "Inferentia" chip, which is reportedly 40% more cost-effective for generating AI responses. Other tech giants like Microsoft and Meta are pursuing similar strategies to create their own chips for AI applications. This trend reflects the growing competition in the AI chip market, driven by the lucrative potential of AI technology.