Amazon Rises as Major Challenger to Nvidia in AI Chip Market

Nvidia has dominated the artificial intelligence (AI) chip market for years, but competition is growing. The company's high-performance graphics processing units (GPUs) have driven tremendous earnings growth.

However, another tech giant, Amazon, may be Nvidia's biggest challenger in this space. Although it works closely with Nvidia and uses its chips, Amazon has developed its own custom chips, including Graviton central processing units (CPUs) and Trainium AI accelerators.

The demand for AI chips and systems is so high that more than one player is needed to fulfill it. Customers may choose Nvidia's top GPUs for certain workloads where the highest performance is required, while opting for Amazon's chips for other projects due to their reasonable prices.