Amazon is in talks to sell custom AI chips to data center customers

Amazon is preparing to compete directly with Nvidia by selling its homegrown AI chips to other companies' data centers, a move that could reshape the trillion-dollar market for artificial intelligence computing and break Nvidia's near-monopoly grip on the hardware powering the AI boom. The retailer's internal chip designs, once built solely to reduce its own cloud computing costs, are now mature enough to become a commercial product, threatening to upend pricing and availability in an industry where Nvidia currently controls roughly 80 percent of the market. If successful, Amazon's strategy could finally inject real competition into a sector where customers have grown desperate for alternatives to Nvidia's dominant—and expensive—processors.

MSN·Jun 19