Amazon Unveils AI Supercomputer and Custom Chips to Challenge Nvidia's Dominance

AWS announces Trainium2 availability, previews Trainium3, and partners with Anthropic to build the world's largest AI compute cluster.

Amazon Web Services (AWS) introduced Trainium2, its latest AI chip, claiming it offers 30-40% better price-performance than Nvidia GPUs.
AWS plans to release Trainium3 in late 2025, promising four times the performance of Trainium2 for advanced AI workloads.
The company is collaborating with AI startup Anthropic to construct an 'UltraCluster,' a supercomputer expected to be the largest AI compute cluster to date.
Amazon aims to reduce reliance on Nvidia, which currently dominates 95% of the AI-chip market, by offering cost-effective, in-house alternatives.
AWS remains the largest cloud provider globally, with a 31% market share in Q3 2024, fueled by growing demand for generative AI solutions.