Amazon unveils a new AI chip as it strengthens relationship with Nvidia

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Amazon unveils a new AI chip as it strengthens relationship with Nvidia
Amazon unveils a new AI chip as it strengthens relationship with Nvidia

Amazon Web Services unveiled Trainium2, a chip for training AI models, in addition to providing access to Nvidia’s upcoming H200 Tensor Core graphics processing units.

The AWS cloud division of Amazon has revealed plans to provide customers with access to Nvidia’s most recent chips in addition to new chips that they can use to develop and run artificial intelligence applications.

Amazon Web Services is making an effort to differentiate itself as a cloud provider by offering a range of affordable options. It will, however, offer more than just low-cost Amazon-branded goods. Similar to its online store, Amazon’s cloud will offer premium goods from other suppliers, such as the highly sought-after GPUs from Nvidia.

Since startup OpenAI debuted its ChatGPT chatbot last year and amazed people with its ability to summarize information and write text that looks like it was written by a human, the demand for Nvidia GPUs has increased dramatically. Nvidia’s chips became scarce as businesses rushed to implement comparable generative AI technologies into their designs.

Amazon may be able to defeat Microsoft, its main rival in the cloud computing space, with its two-pronged strategy of producing its own chips and granting customers access to Nvidia’s most recent chips. Microsoft adopted a similar strategy earlier this month when it unveiled the Maia 100, the company’s first AI chip, and announced that Nvidia H200 GPUs would be available on the Azure cloud.

The news was revealed on Tuesday at the Reinvent conference in Las Vegas. AWS has stated that it will provide users with access to Nvidia’s most recent H200 AI graphics processing units. It also unveiled the general-purpose Graviton4 processor and its new Trainium2 artificial intelligence chip.

The H100 chip, which OpenAI used to train its most sophisticated large language model, GPT-4, has been replaced by the new Nvidia GPU. As a result of competition for a limited supply of the chips among large corporations, startups, and government organizations, there is also a high demand for their rental from cloud providers such as Amazon. According to Nvidia, the H200 will produce images almost twice as quickly as the H100.

AI chatbots like OpenAI’s ChatGPT and its rivals are powered by AI models, which are trained on Amazon’s Trainium2 chips. Anthropic, an OpenAI rival, and startup Databricks intend to develop models using the new Trainium2 chips, which will have four times the performance of the original model, according to Amazon.

Based on Arm architecture, the Graviton4 processors use less energy than AMD or Intel chips. With 30% more performance than the current Graviton3 chips, Graviton4 is expected to enable better output for a lower price, according to AWS. Central bankers have raised interest rates due to unusually high inflation. Consider switching to Graviton if your company wants to continue using AWS but cut costs in order to better manage the economy.

According to Amazon, more than 50,000 AWS users are currently utilizing Graviton chips.

Since releasing its EC2 and S3 cloud computing and data storage services in 2006, AWS has introduced more than 200 cloud products. Not every one of them has succeeded. A select few are discontinued, and some go for extended periods without updates, allowing Amazon to reallocate resources. Nonetheless, the business keeps funding the Trainium and Graviton initiatives, indicating that Amazon recognizes market demand.

Release dates for virtual machine instances based on Trainium 2 silicon and Nvidia H200 chips were not disclosed by AWS. Before Graviton4 virtual machines go on sale in a few months, customers can begin testing them now.

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