Amazon is preparing to sell its own custom artificial intelligence chips, a step that would put the tech giant in more direct competition with Nvidia, the dominant supplier of AI hardware.
According to the Taipei Times, Amazon plans to sell custom AI chips it has developed. Indiatimes reports that the company is in talks to sell these custom AI chips, framing the move as a direct challenge to Nvidia.
Until now, Amazon has been best known on the AI hardware front for designing chips used within its own cloud operations. Offering those chips for sale to outside buyers would mark a shift from in-house use toward competing for customers in the broader market — the same market Nvidia currently leads.
The reports describe the effort as a challenge to Nvidia specifically, signaling that Amazon is positioning its silicon as an alternative for companies that need processing power to build and run AI systems.
Why it matters: AI computing power is one of the most valuable and tightly supplied resources in technology today, and Nvidia's chips have become the default choice for much of the industry. If a company the size of Amazon begins selling its own AI chips to outside buyers, it could give customers more options, put pressure on prices, and chip away at the concentration of a market that has so far been dominated by a single player.