Amazon is moving to sell its proprietary artificial intelligence (AI) semiconductors directly to external companies. Previously, these chips were only available through Amazon Web Services (AWS), but now companies may purchase them for use in their own data centers.
Bloomberg reported on June 19 that Amazon is negotiating to supply its AI chip, Trainium, to customers outside of AWS. Peter DeSantis, Amazon's Chief Executive of AI, stated in an interview, "We have begun discussions with potential companies interested in purchasing Trainium without going through the cloud." The names of the companies involved were not disclosed.
Trainium is Amazon's AI semiconductor designed for training large AI models and generating responses. Since its launch in 2020, it has been adopted by companies such as OpenAI, Anthropic, and Uber Technologies through AWS. If direct sales are realized, companies will be able to utilize the chip in their own data centers, regardless of their cloud usage.
This initiative is noteworthy as it could disrupt the current AI semiconductor supply structure dominated by Nvidia. With the surge in demand for graphics processing units (GPUs) due to the rise of generative AI, major tech companies are seeking alternatives to reduce costs and diversify their supply chains.
Amazon has also emphasized the growth potential of this business. According to the company, the total value of Trainium contracts surpassed $225 billion (approximately 342 trillion won) as of April this year. Most reservations for the Trainium 3, which began shipping earlier this year, have been filled, and interest continues in the next-generation product set to launch next year.
Andy Jassy, the Chief Executive Officer, mentioned in an April letter to shareholders that there is a possibility of selling bundled chip equipment to third parties. Alphabet, Google's parent company, has also decided to supply its AI semiconductor, Tensor Processing Unit (TPU), directly to some customers, indicating that competition among big tech firms is extending beyond internal cloud markets to external ones.
Amazon is reportedly also targeting the demand for 'sovereign cloud' in Europe. Sovereign cloud refers to managing data and computing resources within a specific country or region. If companies or governments can use Amazon chips in their own facilities, they could secure a market presence even in heavily regulated environments.
DeSantis addressed concerns that external sales might cannibalize AWS business, stating, "The demand for computing in the AI field far exceeds supply," clarifying that they could absorb additional unmet AI computing demand rather than taking away from cloud usage.
Following this news, Amazon's stock closed at $244.39, up 2.90% from the previous trading day on June 18.
* This article has been translated by AI.
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