Amazon Web Services (AWS), the world&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s largest cloud computing provider, is considering using new artificial intelligence (AI) chips from Advanced Micro Devices (AMD), the company that outlined its strategy for the AI market during a recent event. The AI market is currently dominated by Nvidia, but AMD&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s updated specifications could surpass Nvidia&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s current offerings on some metrics.
Despite the technical specifications being released and the potential benefits, AMD&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s shares fell after the company did not disclose a flagship customer for the chip. CEO Lisa Su believes that winning over major customers comes down to offering all the required technological components in one menu, allowing customers to pick and choose which ones they want using standard connections.
Amazon has not made any public commitments to use AMD&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s AI chips, but Vice President Dave Brown said that AWS is considering partnering with AMD to develop the new AI chips. Brown said that Amazon has declined to work with Nvidia on its DGX Cloud offering but preferred to design its own servers from scratch while incorporating Nvidia&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s H100 chip.
Brown added that AWS is still working on the details of where AMD&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s AI chips will land in AWS, but he believes his team has benefited from the work AMD has done around the design that plugs into existing systems.
Nvidia does sell its chips piecemeal but is also asking cloud providers if they are willing to offer an entire system designed by Nvidia in its DGX Cloud product. Oracle Corporation is Nvidia&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s first partner for that system.
AWS, on the other hand, prefers to design its own servers from the ground up. Therefore, when AWS started selling Nvidia&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s H100 chip in March, it was as part of systems of its own design. Brown said that AWS declined to partner with Nvidia as they evaluated the business model and it did not make sense.
Su is confident that her approach of offering all the necessary technological components in one menu will work to win over major cloud computing customers, but the final decision rests with the customer. AWS is yet to make a final decision on partnering with AMD, but their teams have been working together on creating a new chip that plugs seamlessly into existing systems.
In conclusion, the AI market is an extremely competitive arena, with Nvidia currently dominating the space. However, with AMD releasing updated specifications for its AI chips, everything might just change, and the competition might intensify. AWS has firmly established itself as the world&https://adarima.org/?aHR0cHM6Ly9tY3J5cHRvLmNsdWIvY2F0ZWdvcnJ5Lz93cHNhZmVsaW5rPUhUSW0xMEJiQkF3QXBic0NhZGZFZUZsZ2lIbmlrTjNsbmNUSTFOV1JsTVhKWE5UbExaWGRDZG1SVFp6MDk-8217;s largest cloud computing provider, and its decision to partner with AMD could be a game-changer in the AI market. Only time will tell how it plays out in the end.
