By Laura Bratton
Publication Date: 2025-12-02 16:07:00
Amazon (AMZN) released a new AI chip on Tuesday, marking the latest move by a tech giant to challenge leading chipmaker Nvidia (NVDA) by introducing custom chips that can handle some AI tasks at lower prices.
Amazon said its servers equipped with Trainium3 chips are four times faster and more energy efficient than those with its previous-generation chips.
” Trainium already represents a multibillion-dollar business today and continues to grow really rapidly,” Amazon Web Services CEO Matt Garman said during the tech giant’s annual event, called re:Invent, Tuesday.
The tech giant is one of several Nvidia customers to develop their own AI semiconductors in what is likely the largest competitive threat for the leading chipmaker.
Google (GOOG) unveiled its latest AI chip, the seventh-generation Ironwood TPU (tensor processing unit), in early November, and the company is reportedly in talks to supply Meta (META) with billions of dollars’ worth of its TPUs in addition to a recent multibillion-dollar deal with Anthropic (ANTH.PVT). Meanwhile, Microsoft (MSFT) is aiming to eventually rely on its own custom chips rather than Nvidia’s, though it has faced delays in developing in-house silicon.
“Diversity of chips in the AI market is a good thing,” AWS vice president of compute and machine learning Dave Brown told Yahoo Finance in an interview.
Amazon has been aggressively scaling up its custom AI hardware over the past year. The company recently…