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© 2026 Benzinga | All Rights Reserved
December 4, 2024 9:50 AM 2 min read

Amazon Takes On Nvidia With Cheaper AI Supercomputers, Servers

by Anusuya Lahiri Benzinga Editor
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On Tuesday, Amazon.com Inc‘s (NASDAQ:AMZN) cloud unit showcased fresh data center servers embedded with its artificial intelligence (AI) chips at the company’s Re:Invent event.

The new servers, dubbed Trn2 UltraServers, will target Nvidia Corp’s (NASDAQ:NVDA) flagship server, packed with 72 of its latest Blackwell chips, Reuters reports. Nvidia commands the AI chips market with over 70% market share.

Also Read: Marvell Unveils New Platform, Targets Growing AI Bandwidth Demands

Amazon Web Services disclosed Apple Inc (NASDAQ:AAPL) as a customer for the AI chips during the event.

Amazon is building artificial intelligence supercomputers in collaboration with OpenAI rival Anthropic, which will feature hundreds of thousands of Amazon’s latest AI training chip, Trainium 2.

Apple executive Benoit Dupin told Reuters that Apple is already using Trainium2 chips, and AWS chief Matt Garman told Reuters that Trainium3 will debut in 2025.

Gadi Hut, the business development lead for AI chips at AWS, said that AWS can connect more chips than Nvidia and that some AI models can be trained at a 40% lower cost than Nvidia chips.

Amazon also announced an expanded partnership with Oracle Database, Orbital Materials, and AWS’ overhaul of the cloud contact center solution with new Generative AI solutions.

Price Action: AMZN stock is up 1.9% at $217.60 at last check Wednesday.

Also Read:

  • Intel’s New CEO Change Unlikely To Help Gain Traction Versus Taiwan Semi And Nvidia: Analysts

Photo: Shutterstock

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Posted In:
NewsTechMediaAIartificial intellgenceBriefsBZ Data ProjectsemiconductorsStock BattlesStories That Matter
AMZN Logo
AMZNAmazon.com Inc
$212.53-0.32%
Overview
AAPL Logo
AAPLApple Inc
$257.00-0.18%
MRVL Logo
MRVLMarvell Technology Inc
$87.48-2.33%
NVDA Logo
NVDANVIDIA Corp
$178.030.12%

Amazon also announced expanded collaboration with Marvell Technology, Inc (NASDAQ:MRVL) on AI and data connectivity products, which Bank Of America Securities analyst Justin Post deems mutually beneficial for the companies and will help alleviate some AWS dependence on supply-constrained Nvidia chips. Prior reports indicated Blackwell chips’ production challenges at Nvidia impacted AWS’ data center plans.

AMZN Logo
AMZNAmazon.com Inc
$212.53-0.32%
Overview
AAPL Logo
AAPLApple Inc
$257.00-0.18%
MRVL Logo
MRVLMarvell Technology Inc
$87.48-2.33%
NVDA Logo
NVDANVIDIA Corp
$178.030.12%
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