Prysmian, Rio Tinto Supply Low-Carbon Cables for Amazon Ohio Data Center 
Big AI wants to slow down AI research. Is it a safety pause or a strategic retreat? 
OpenAI Urges US-Led Global Standards for Frontier AI 
Trump Bans CNN, MS NOW and Politico From White House 
Apple Pay Set for India Launch With Axis Bank 
Trump Plans Federal AI Force and AI Czar 
Guterres Urges Stronger Global AI Safeguards Ahead of UN Assembly 
SpaceX Nasdaq 100 Weight to More Than Double in Rebalance 
LVMH-Hermès Dispute Deepens Over Secret 2002 Share Deal 
US Federal Register Drops Alibaba Qwen AI Search Tool 
NASA, Boeing Discuss Expanding Starliner Missions 
Nvidia CEO Jensen Huang Expected at Trump-Xi State Dinner 
Petrobras Joins Brazil’s New Diesel Subsidy Program 
Paramount-Warner Bros $110 Billion Deal Draws Antitrust Backlash 
Westinghouse Targets $50 Billion Valuation in U.S. IPO 
France Urges Faster AI Push Despite Safety Risks 
SK Hynix, Intel Discuss U.S. Memory Chip Production Deal 
Add as a preferred source on Google
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.
