New AI Chip Announced by Amazon
In seeking to remain a big, if not the leading, name in the cloud service market, Amazon Web Services has revealed big news for the future. Amazon’s AWS cloud operations unit just announced brand new chips for clients to create, build, and operate AI applications on, as well as steps taken to offer customers access to various Nvidia’s latest chips. This latest Amazon Cloud will offer a variety of top-of-the-line GPUs from AI chipmaking giant Nvidia and highly sought-after products from different companies.
Nvidia’s GPUs experienced significantly increased demand after the launch of OpenAI’s groundbreaking ChatGpt chatbot around a year ago. Following ChatGPT’s release, Nvidia started experiencing shortages due to companies seeking to implement similar generative AI technologies into their own products. Within this situation, Amazon saw an opportunity and has begun an approach that includes both allowing consumers access to Nvidia’s products and building its own chips. Amazon’s top competitor, Microsoft, similarly announced its inaugural chip, the Maia 100, and plans to give clients access to Nvidia H200 GPUs.
Amazon made this announcement on Tuesday in Las Vegas at the Reinvent conference. AWS said it will now offer access to Nvidia’s new h200 AI GPUs, as well as its new Trainium2 AI chip and the general-purpose Graviton4 processor. Amazon’s Trainium2 chips are designed and built for training AI models, models similar to OpenAI’s ChatGPT. Amazon-backed OpenAI competitor Anthropic and startup Databricks intend to construct models utilizing the new Trainium2 chips, which reportedly boast four times improved performance.
The Graviton4 processors are based on Arm systems and use less energy than chips from AMD or Intel. Graviton4 ensures 30% improved performance compared to previous Graviton3 chips, allowing for what AWS says is better output for the price. As a result of increasing inflation rates, organizations that wish to remain with AWS and, at the same time, lower cloud expenses will most likely move to Graviton. This movement is seen as Amazon reported over 50,000 AWS customers have quickly moved to using Graviton chips.
Amazon opened up early access to customers who want to test Graviton4 virtual machine instances before they become commercially accessible within the upcoming months. Amazon is a highly competitive company that is constantly developing, and this announcement is another example of that.
Wow, this is very surprising. When we think of Amazon we think of a company that is dominating the consumer goods and products sector. Amazon is so large that they are now moving into the tech space more, this will be interesting to see how this will affect the market. I guess we are seeing some major companies integrating AI more which will cause a higher demand for these GPU's.
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