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TAKEAWAYS KEY
- Amazon is building an artificial intelligence (AI) supercomputer made of its in-house Trainium chips and also a new server that it said will be used by AI startup Anthropic.
- Amazon invested an additional $4 billion into Anthropic.
- The new chips and servers are part of Amazon Web Services' push to make its homegrown Trainium a "viable alternative" to Nvidia's GPUs, according to The Wall Street Journal.
Amazon (AMZN), a company that specializes in artificial intelligence, is building a supercomputer using its own Trainium chip. It will also be providing a server to AI startup Anthropic.
It is important to note that the word “you” means “you”. “Ultracluster” The Wall Street Journal revealed that Amazon Web Services, the cloud computing arm of tech giant Amazon, was developed by Amazon’s Austin chip lab. Amazon has invested another $4 billion into Anthropic’s Claude, a chatbot that is a direct competitor of OpenAI ChatGPT.
"Together with Anthropic, AWS is building an EC2 UltraCluster of Trn2 UltraServers—named Project Rainier—containing hundreds of thousands of Trainium2 chips and more than 5x the number of exaflops used to train their current generation of leading AI models," Amazon said.
The exaflop measures the computing power of a supercomputer.
Trainium Being Positioned as 'Viable Alternative' To Nvidia GPUs, WSJ Says
Journal says that AWS is committed to Trainium which they are positioning as their own homegrown platform. “viable alternative” Nvidia’s (NVDA) graphics processing units are similar to those sold by Magnificent Seven (NVDA), a rival company.
Amazon shares have gained 40% in the past year, up to Tuesday, despite being 0.7% lower at pre-market.
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