In Generative AI Market, Amazon Chases Microsoft and Google with Custom AWS Chips

An anonymous reader shared this report from CNBC:In an unmarked office building in Austin, Texas, two small rooms contain a handful of Amazon employees designing two types of microchips for training and accelerating generative AI. These custom chips, Inferentia and Trainium, offer AWS customers an alternative to training their large language models on Nvidia GPUs, which have been getting difficult and expensive to procure. "The entire world would like more chips for doing generative AI, whether that's GPUs or whether that's Amazon's own chips that we're designing," Amazon Web Services CEO Adam Selipsky told CNBC in an finterview in June. "I think that we're in a better position than anybody else on Earth to supply the capacity that our customers collectively are going to want...." In the long run, said Chirag Dekate, VP analyst at Gartner, Amazon's custom silicon could give it an edge in generative AI... With millions of customers, Amazon's AWS cloud service "still accounted for 70% of Amazon's overall $7.7 billion operating profit in the second quarter," CNBC notes. But does that give them a competitive advantage? A technology VP for the service tells them "It's a question of velocity. How quickly can these companies move to develop these generative AI applications is driven by starting first on the data they have in AWS and using compute and machine learning tools that we provide."In June, AWS announced a $100 million generative AI innovation "center." "We have so many customers who are saying, 'I want to do generative AI,' but they don't necessarily know what that means for them in the context of their own businesses. And so we're going to bring in solutions architects and engineers and strategists and data scientists to work with them one on one," AWS CEO Selipsky said... For now, Amazon is only accelerating its push into generative AI, telling CNBC that "over 100,000" customers are using machine learning on AWS today. Although that's a small percentage of AWS's millions of customers, analysts say that could change. "What we are not seeing is enterprises saying, 'Oh, wait a minute, Microsoft is so ahead in generative AI, let's just go out and let's switch our infrastructure strategies, migrate everything to Microsoft.' Dekate said. "If you're already an Amazon customer, chances are you're likely going to explore Amazon ecosystems quite extensively."

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