Part 9/14:
Amazon is also making strides in the chip arena, with more than half of its cloud AI services now running on proprietary custom chips. Its Tranium chip series exemplifies this effort, with Tranium 2—a significant upgrade—offering reduced operating costs despite falling short of Nvidia’s top-of-the-line offerings. Amazon’s strategic focus on cost-efficiency aligns with its commitment to serve large clients like Anthropic, whose reinforcement learning-heavy workloads benefit from such optimized hardware.
AWS’s push for self-sufficient AI infrastructure reflects the broader industry trend, with Amazon’s long-term investment in custom chips positioning it as a key player in the platform war for AI dominance.