Nvidia's Dominance in AI Chips Unshaken by Amazon's Moves
Nvidia has been a leading seller of AI chips, generating triple-digit revenue growth and record levels of revenue. The company's commitment to updating its chips on an annual basis makes it difficult for others to jump ahead.
Despite this success, Nvidia faces competition from fellow chip designers such as Advanced Micro Devices (AMD) and Intel, as well as tech companies like Amazon that have designed their own chips.
Amazon's AWS unit is the world's biggest cloud service provider, suggesting many companies turn to it for AI needs. They may find Nvidia's top chips on offer, but also access to Amazon's own in-house-developed chips.
During a recent earnings call, Amazon chief Andy Jassy said 'We have customers who will run on Nvidia for as long as we can foresee.' This means Amazon isn't in the chip business to replace Nvidia, but rather to offer customers options and different price points.