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Amazon may soon launch Trainium 2, its next AI chip to rival Nvidia

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Amazon is reportedly preparing to launch its next generation of artificial intelligence (AI) chip – Trainium 2, aiming to reduce its reliance on industry leader Nvidia. A report claimed that the company's cloud computing division, Amazon Web Services (AWS), is heavily investing in custom-designed chips to enhance the efficiency of its vast network of data centres.

According to a report by the Financial Times, Amazon aims to lower operational costs for both Amazon and its AWS customers by using its own chips.

Amazon’s Annapurna Labs designing Amazon’s next chip
The report notes that Annapurna Labs, an Israeli chip startup acquired by Amazon in 2015 for $350 million, is leading this innovation, and the chip is expected to be unveiled next month as part of Amazon's lineup of AI chips designed for training large-scale AI models .


Reportedly, Trainium 2 is already undergoing testing with several prominent companies, including Anthropic, an AI startup backed by Amazon. AWS and Annapurna are directly challenging Nvidia, which currently dominates the AI processor market.

“We want to be absolutely the best place to run Nvidia. But at the same time, we think it's healthy to have an alternative," Dave Brown, vice president of compute and networking services at AWS, was quoted as saying.

Amazon claims that its "Inferentia" AI chips, designed for generating responses from AI models, are already 40% cheaper to operate than comparable solutions.

Amazon offers free computing power to AI researchers
The news comes as Amazon Web Services (AWS) has announced that it will offer free computing power to researchers who utilise its custom-designed AI chips. AWS will provide researchers with credits worth an estimated $110 million to access its cloud data centres and utilise "Trainium," its specialised chip for developing AI models.

This initiative aims to encourage wider adoption of Amazon's AI chips among the research community. By offering free access to its powerful cloud infrastructure and custom-designed hardware, AWS hopes to gain traction and demonstrate the capabilities of its AI technology.
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