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

Amazon is positioning itself to compete directly with Nvidia by selling its own custom-designed artificial intelligence chips to other companies' data centers, a move that could fundamentally reshape the trillion-dollar market for AI computing power. The retail giant's pivot from being a customer of chip makers to becoming a supplier signals that the scarcity and high costs of Nvidia's processors have created an opening for alternatives—and that Amazon believes its internal chip expertise, honed over years of powering its own cloud operations, is now valuable enough to sell. If successful, the strategy could break Nvidia's stranglehold on the AI infrastructure market and trigger a broader shift toward proprietary chips across the technology industry.

MSN·Jun 19