Apple is betting on Amazon chips for its AI servers

Amazon’s cloud unit unveiled new data center servers packed with its own AI chips on Tuesday, challenging Nvidia and Apple as customers to use them.

The new servers, which are based on 64 Trainium2 chips from Amazon Web Services (AWS), will be linked together to form a giant supercomputer with hundreds of thousands of chips, with the assistance of AI firm Anthropic, which will be the first to use them. Apple executive Benoit Dupin also stated that the technology is based on Trainium2 chips.

Nvidia dominates AI chip sales with more than 70% market share, while traditional chip industry rivals like Advanced Micro Devices (AMD) race to catch up.

However, some of Nvidia’s most serious competitors are also its customers: Meta, Microsoft, and Alphabet’s Microsoft and Google all have specialized AI chips. While Meta’s chip powers internal operations, Amazon and Google use their chips internally while also marketing them to paying consumers.