Amazon to take on NVIDIA, is developing AI chips that are cheaper, faster than Jensen Huang's solutions
Amazon’s drive to develop its own processors is aimed at providing more cost-effective solutions for customers who need to perform complex calculations and process large volumes of data. By producing its own chips, Amazon aims to mitigate the so-called ‘NVIDIA tax’ Amazon is developing new AI chips that are set to outperform and be cheaper than NVIDIA’s current offerings. By producing its own chips, Amazon aims to mitigate the so-called “NVIDIA tax,” referring to the high cost associated with NVIDIA’s AI chips. Amazon’s efforts are not unique; other tech giants like Microsoft and Alphabet are also developing their own AI chips to reduce costs and improve performance. By reducing its reliance on NVIDIA and developing its own high-performance, cost-effective AI chips, Amazon aims to maintain its edge in the cloud computing market and continue to drive growth in its AWS division.
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