Bank of America Says These Overlooked AI Stocks Could Be the Next Winners 
Belimo H1 Sales Surge as AI Data Center Cooling Drives More Than Half of Growth 
Super Micro Computer Stock Jumps 20% After Record AI Orders and Margin Surge 
Alphabet Q2 Earnings Beat Estimates as AI Spending, Google Cloud Growth Fuel Outlook 
US Investigates Moonshot Over Alleged Use of Advanced AI Chips and IP Theft 
SpaceX Eyes Pentagon AI Deal as Cloud Pricing Strategy Pressures CoreWeave 
Nationwide Data Center Protests Highlight Growing Backlash Against AI Expansion 
DeepSeek Eyes $74 Billion Valuation Ahead of Planned China IPO 
Lockheed Martin Unveils Lower-Cost Patriot ACE Interceptor to Meet Rising Air Defense Demand 
Wistron Opens $700M Texas AI Factory to Build Nvidia GB300 Superchips 
Nvidia Reveals 9.3% Stake in AI Cloud Firm Nebius Following $2 Billion Investment 
GM Q2 Earnings Beat Estimates as General Motors Raises 2026 Profit Outlook 
Foxconn Wins First SpaceX AI Server Contract Worth Estimated $52 Billion 
Intel, AMD Seek Long-Term China Server CPU Deals as AI Demand Drives Supply Crunch 
Samsung Eyes Up to $1.14 Billion Investment in AI Startup Mistral 
Amazon is working on developing cheaper AI chips to compete with Nvidia, aiming to reduce the high costs associated with Nvidia's chips and improve the efficiency of its cloud computing services, Amazon Web Services.
New Amazon AI Chip Developments
In an effort to reduce its exposure to the so-called Nvidia tax—the high expense of using Nvidia chips—to run its artificial intelligence cloud business through Amazon Web Services, the company is working on its own processors, Reuters reports.
Amazon hopes that its indigenous chips will make it easier and cheaper for customers to do complicated computations and analyze massive quantities of data.
Microsoft and Alphabet, two of its competitors, are moving in the same direction.
According to Sinno, who is in charge of engineering for Amazon's cloud division AWS's Annapurna Labs, customers of Amazon are looking for less expensive alternatives to Nvidia.
In 2015, Amazon completed the acquisition of Annapurna Labs.
Although Amazon's artificial intelligence (AI) chip initiatives are in their early stages, the company's non-AI workhorse chip, Graviton, has been under development for almost a decade and is now in its fourth version. The Trainium and Inferentia AI chips are more recent creations.
Amazon's Cost-Efficiency Focus
"So the offering of up to 40%, 50% in some cases of improved price (and) performance - so it should be half as expensive as running that same model with Nvidia," said David Brown, Vice President, Compute and Networking at AWS, on Tuesday.
Amazon Web Services (AWS) sales, which constitute slightly less than 20% of Amazon's total income, increased by 17% year over year to $25 billion in the quarter ending in March. About a third of the cloud computing market is controlled by AWS, while about 25% is held by Azure, Microsoft's cloud service.
Prime Day Chip Utilization
Amazon revealed that in order to manage the spike in activity across its platforms on its recent Prime Day, the business installed 80,000 special AI chips and a quarter million Graviton chips, as per Yahoo Finance.
According to Adobe Analytics, the shopping event brought in a record-breaking amount of revenue, which was $14.2 billion.
