tech
Amazon Custom Chips Get a Boost from Meta, Giving the Cloud Giant Another Path to Win in AI
Amazon hits a record high after its new Meta deal highlights how AWS is gaining traction in AI through both cloud capacity and its custom chips.
TL;DR
- Meta Platforms will use Amazon's Graviton chips for its computing needs in a deal lasting at least three years.
- This partnership makes Meta a top-five customer for Amazon's Graviton CPUs, strengthening AWS's position in AI infrastructure.
- Amazon's chips, including Graviton CPUs and Trainium accelerators, offer cost efficiency and scalability as alternatives to Nvidia's GPUs.
- Amazon's annual revenue run rate for its chips business (Graviton, Trainium, Nitro) has surpassed $20 billion, growing at triple-digit percentages year-over-year.
- The deal benefits both Amazon and Meta, with AWS aiming to capture more of the AI boom by selling essential chips.