Amazon Web Services (AWS) Takes on Nvidia with Discounted AI Chips

In a bold move to compete with Nvidia Corporation, Amazon Web Services (AWS) has reportedly started offering significant discounts on its artificial intelligence (AI) chips. This strategy aims to attract more customers by providing a cost-effective alternative to Nvidia's offerings.

According to an AWS client, the company is now renting servers powered by its Trainium chip at a quarter of the price of Nvidia's H100 semiconductors, despite boasting similar computing power. This aggressive pricing strategy could potentially disrupt the market and offer businesses a viable alternative to Nvidia's chips.

Last year, AWS hinted at this shift by mentioning that several tech giants, including Apple Inc., were experimenting with the latest version of the Trainium chip. This move indicates a growing interest in diversifying AI chip suppliers and reducing reliance on Nvidia.