Amazon Plans To Make AI Chips Cheaper Than Nvidia And Jensen Huang Is Not Happy About It

Cheap as chips

Tbf I haven’t actually heard anything about Mr Huang responding, but you can probably imagine him being mad about it. Him just seething. Just cooking in his leather jacket…

Anyways, online booksellers, ‘Amazon Dot Com’ launched their new AI chip ‘Trainium3’ on Tuesday and according to the corp servers on that chip are 4x faster, energy efficient than previous generations and are up to 40% cheaper than Nvidia’s competitor chips.

But they would say that, wouldn’t they?

“Trainium already represents a multibillion-dollar business today and continues to grow really rapidly,” Amazon Web Services CEO Matt Garman said during the tech giant’s annual event, re:Invent. Sure, like I’m trusting the guy who pressed off and on again on the internet a couple months ago.

The awkward thing is that Amazon is a massive Nvidia customer. In fact, more than 10% of Lama Zone’s capital expenditure (that CapEx to all the cool boys out there) goes to Nvidia and in return, Amazon is 7.5% of Nvidia’s revenue.

So you’re saying the money’s just going round in a circle? What’s another word for a 3D circle again? Oh yeah: a bubble.

…what does all this have to do with selling books?

Previously on, ‘Tech Oligopoly: The Series’

Back in November, Amazon got a 5% stock boost from the announcement that OpenAI will access hundreds of thousands of Nvidia graphics cards through its cloud computing service.

The deal was just one of many that OpenAI made this year. $300 billion with Oracle. $22 billion with CoreWave. Plus the ink’s only just dried on agreements with Broadcom, AMD, Nvidia and my mate Nigel who has a basement that they can use if Sharon kicks them out again.

And it looks like OpenAI might need it soon because, lady and gentleman, the bubble is at a-bursting point.

Nvidia just topped $5 trillion. OpenAI is about to be worth $1 trillion with barely any revenue (but hey, they are a non-profit). And everyone’s getting into bed with each other, assuring that if one drowns, they all drown (not sure why the bed’s in the ocean, but here we are).

Maybe at least one of those data points will change soon however, as OpenAI have started to work with Microsoft to see if they can change to a for-profit.

Let’s just see how all this pans out…

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