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

Amazon is preparing to monetize years of internal chip development by selling custom artificial intelligence processors to the data center customers it has long competed against, a striking shift that suggests even the cloud giant sees more profit in becoming a chip supplier than in hoarding its technology advantage. The move would transform Amazon's secretive semiconductor division into a direct rival to Nvidia while simultaneously positioning the company as infrastructure broker to its own competitors, a delicate balance that could reshape how cloud computing's most valuable asset—specialized AI hardware—gets distributed across the industry. If the talks succeed, Amazon would join Intel and a handful of specialized startups in challenging Nvidia's near-monopoly on AI chips, but with an unusual twist: selling to customers it actively competes

MSN·Jun 19