AWS is in talks to sell its chips to other data centers. CEO Andy Jassy has said this represents a $50 billion opportunity for the company.

While AI GPU giant NVIDIA's chips are widely believed to offer superior total cost of ownership (TCO) compared to custom AI chip alternatives, analysts from Evercore ISI believe that AI engineers are unimpressed by them. NVIDIA CEO Jensen Huang has defended his firm's AI chip price points on multiple occasions by claiming that they offer better performance efficiency compared to peers. However, according to the Evercore report, AI engineers are also focused on other metrics, such as the cost of cooling the chips, when deciding which products to use. Power Consumption & Cooling Are Important For NVIDIA's AI Chip Costs, […]

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Investment bank Morgan Stanley believes that even though building a data center with NVIDIA's Blackwell GPUs costs twice as much as building one with AI application-specific integrated circuits (ASICs), the computing power efficiency of the NVIDIA chips is significantly greater than the custom chips as well. The high costs of NVIDIA's latest AI GPUs are a hot-button market topic, with CEO Jensen Huang having asserted on multiple occasions that even though his chips are pricey, they offer greater returns over the long term. NVIDIA's Compute Performance Per Watt Is Up to 8x Ahead Of Custom AI Chips, Says Morgan Stanley […]

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Meta has commandeered a big chunk of Amazon's homegrown CPUs (not GPUs) for AI agentic workloads, signaling that a new kind of chip race has begun.

Amazon's CEO, Andy Jassy, issued a letter to shareholders about the company's custom chip business, and his words showed strong optimism about the in-house infrastructure stack. Amazon's Andy Jassy Hints Towards Selling Their Custom Silicon To External Customers, Given Their Internal Success There's no doubt that hyperscalers are experiencing what we call a 'compute crunch' today, with current infrastructure unable to meet the demand driven by AI and related services. We have seen giants like Amazon, Google, and Meta resort to custom silicon efforts as a way to address this gap in compute capabilities, but out of the bunch, Amazon's […]

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Shortly after Amazon announced its $50 billion investment in OpenAI, AWS invited me on a private tour of the chip lab at the heart of the deal.