Amazon shares are advancing after the company unveiled its newest AI chip, positioning it as a more cost-efficient alternative to existing high-performance solutions such as Nvidia’s. The new Trainium3 UltraServers are now available to customers and mark Amazon’s latest effort to tighten control over its AI infrastructure and reduce reliance on external chip suppliers.
According to Amazon, Trainium3 delivers up to 4.4 times more compute performance, four times higher energy efficiency and nearly four times the memory bandwidth compared with the previous generation. The company expects these improvements to accelerate model training and lower operational costs for enterprises deploying advanced AI workloads.
The move underscores Amazon’s push to strengthen its competitive position in cloud-based AI services amid accelerating demand. By integrating its own silicon more deeply into AWS offerings, Amazon aims to enhance performance while offering customers a potentially more economical option for scaling AI development.
