{"id":40718,"date":"2025-11-05T06:51:07","date_gmt":"2025-11-05T06:51:07","guid":{"rendered":"https:\/\/eduzim.co.zw\/news\/?p=40718"},"modified":"2025-11-05T06:51:07","modified_gmt":"2025-11-05T06:51:07","slug":"273746","status":"publish","type":"post","link":"https:\/\/eduzim.co.zw\/news\/2025\/11\/05\/273746\/","title":{"rendered":"&#8216;World will benefit from choice&#8217; in AI chips"},"content":{"rendered":"<p> <script data-jetpack-boost=\"ignore\" async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1669381584671856\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- Africa tv video display -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-1669381584671856\"\r\n     data-ad-slot=\"3579572842\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script data-jetpack-boost=\"ignore\">\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<figure id=\"attachment_273747\" aria-describedby=\"caption-attachment-273747\" style=\"width: 1500px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-273747 size-full\" src=\"https:\/\/i0.wp.com\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/11\/World-will-benefit-from-choice-in-AI-chips.jpg?resize=640%2C341&#038;ssl=1\" alt=\"AWS CEO Matt Garman: 'World will benefit from choice' in AI chips\" width=\"640\" height=\"341\" srcset=\"https:\/\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/11\/World-will-benefit-from-choice-in-AI-chips.jpg 1500w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/11\/matt-garman-1500-800-300x160.jpg 300w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/11\/matt-garman-1500-800-1024x546.jpg 1024w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/11\/matt-garman-1500-800-768x410.jpg 768w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/11\/matt-garman-1500-800-150x80.jpg 150w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/11\/matt-garman-1500-800-450x240.jpg 450w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2025\/11\/matt-garman-1500-800-1200x640.jpg 1200w\" sizes=\"(max-width: 1500px) 100vw, 1500px\"\/><figcaption id=\"caption-attachment-273747\" class=\"wp-caption-text\">Amazon Web Services CEO Matt Garman<\/figcaption><\/figure>\n<p><strong>Making more choice<\/strong> available to customers for their AI computing needs is at the core of Amazon Web Services\u2019 chip procurement strategy, which includes designing its own hardware and acquiring high-end chips from market leader Nvidia.<\/p>\n<p>This is according to AWS CEO Matt Garman who, in response to a question from TechCentral on Tuesday, said the cloud services giant\u2019s two-pronged chip strategy is less about mitigating against supply-chain risks \u2013 this is despite high demand for advanced chips and limited manufacturing capacity worldwide \u2013 and more about ensuring AWS customers can access a variety of hardware options best suited to their AI computing needs.<\/p>\n<p>\u201cAt the foundry level, both chips are made at the same foundries, so I don\u2019t know [if our strategy] mitigates anything. I don\u2019t think the processor world is a winner-take-all environment, so it is less about supply-chain risk here and more about giving customers the most choice,\u201d said Garman, who spoke at a media event held by AWS at its Seattle, US headquarters on Tuesday, which TechCentral attended. \u201cWe invest in both because we think the world will benefit from choice.\u201d<\/p>\n<aside class=\"modern-quote pull alignright\">Amazon\u2019s journey to designing its own chips began with the acquisition of Annapurna Labs in 2015<\/aside>\n<p>Amazon\u2019s journey to designing its own chips began with the acquisition of Israeli microelectronics firm Annapurna Labs in 2015. Annapurna\u2019s design capabilities led to the deployment of AWS\u2019s first AI chips, Inferentia, in 2019. Inferentia was followed by first-generation Trainium chips in 2022. These chips, which run the bulk of AI workloads at AWS data centres, are now in their second generation, with a third-generation chip in the works.<\/p>\n<p>Garman\u2019s assertion that AWS\u2019s two-pronged chip strategy is not centred on mitigating against supply-chain risks is rooted in the fact that both the AWS Trainium and Nvidia H100 GPU\u2019s are manufactured by the Taiwan\u2019s TSMC, meaning any bottlenecks at TSMC could affect the supply of both chips.<\/p>\n<p>TSMC is one of only two companies in the world \u2013 the other is South Korea\u2019s Samsung Electronics \u2013 with the ability to manufacture chips using the 4- or 5-nanometre technology in the H100 or Trainium2 chips. The upcoming Trainium3 chips will be made using an even more advanced 3nm process.<\/p>\n<h2>Cheaper to build and run<\/h2>\n<p>Although not as powerful, Trainium chips are cheaper to build and run compared to market-leading Nvidia H100 GPUs. AWS claims training AI models on Trainium2 chips is 30-50% cheaper than on Nvidia\u2019s H100s. Even so, Amazon procures plenty of Nvidia chips for its data centres.<\/p>\n<p>Garman said different customer workloads call for different hardware requirements. At the highest level, this philosophy is evidenced by the different hardware deals AWS has struck with AI companies.<\/p>\n<p>The first, with Claude developer Anthropic, involves a multibillion-dollar investment by AWS into Anthropic. Anthropic, in turn, has named AWS as its primary infrastructure provider, leading to the bulk of workloads for training and using Claude models running on AWS Trainium hardware.<\/p>\n<h3 style=\"text-align: right;\">Read: Absa turns to AWS in expanded cloud banking push<\/h3>\n<p>AWS has struck another deal with ChatGPT creator OpenAI. Announced on Monday, the deal involves a $38-billion commitment by OpenAI to buy compute capacity from AWS over the next seven years. OpenAI\u2019s workloads in the AWS cloud will run on Nvidia hardware and not Trainium chips.<\/p>\n<p>These moves come as AI investments ramp up across the market, with an anticipated surge in agentic AI adoption at the enterprise level expected to fuel a surge in AI computing demand.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-236324\" src=\"https:\/\/i0.wp.com\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/11\/1762325466_721_World-will-benefit-from-choice-in-AI-chips.jpg?resize=640%2C341&#038;ssl=1\" alt=\"\" width=\"640\" height=\"341\" srcset=\"https:\/\/eduzim.co.zw\/news\/wp-content\/uploads\/2025\/11\/1762325466_721_World-will-benefit-from-choice-in-AI-chips.jpg 1500w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2023\/12\/cloud-computing-1500-800-300x160.jpg 300w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2023\/12\/cloud-computing-1500-800-1024x546.jpg 1024w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2023\/12\/cloud-computing-1500-800-768x410.jpg 768w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2023\/12\/cloud-computing-1500-800-150x80.jpg 150w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2023\/12\/cloud-computing-1500-800-450x240.jpg 450w, https:\/\/techcentral.co.za\/wp-content\/uploads\/2023\/12\/cloud-computing-1500-800-1200x640.jpg 1200w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\"\/>\u201cThere is a $125-billion investment in capex for the AWS business, and it\u2019s growing. Part of that is because we have massive demand, requiring more computers, data centres and power. That demands a massive investment from us, and we have to make that investment well ahead of demand,\u201d said Garman.<\/p>\n<p>Another likely driver spurring AWS\u2019s diversified chip strategy is competition. Both Google and Microsoft, which offer Google Cloud and Microsoft Azure cloud services, respectively, follow similar strategies to AWS regarding the deployment of AI chips in their data centres. For all three \u201chyperscalers\u201d, Nvidia chips represent the peak of performance, while partnerships with other chips manufacturers such as AMD for Google and Broadcom for Microsoft allow for the provision of a second, more cost-effective offering.<\/p>\n<p>\u201cWe are really excited about Trainium; with both chips we have now and the road map going forward, we think we can deliver a lot of value for customers. The Nvidia team is an incredible executor. They have awesome processors, they have been leading this whole revolution for the last few years, and I don\u2019t expect that to change, either.<\/p>\n<h3 style=\"text-align: right;\">Read: OpenAI bets $38-billion on AWS in cloud power grab<\/h3>\n<p>\u201cFive years from now, both of those are going to be successful platforms for companies \u2013 and there may be others,\u201d said Garman.\u00a0 \u2013<em> \u00a9 2025 NewsCentral Media<\/em><\/p>\n<ul>\n<li>The author travelled to Seattle as a guest of AWS<\/li>\n<\/ul>\n<\/div>\n<p><script data-jetpack-boost=\"ignore\" async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1669381584671856\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- Africa tv video display -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-1669381584671856\"\r\n     data-ad-slot=\"3579572842\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script data-jetpack-boost=\"ignore\">\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n#World #benefit #choice #chips<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon Web Services CEO Matt Garman Making more choice available to customers for their AI computing needs is at the&hellip;<\/p>\n","protected":false},"author":1,"featured_media":40719,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[],"class_list":["post-40718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mzansi"],"_links":{"self":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/40718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/comments?post=40718"}],"version-history":[{"count":1,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/40718\/revisions"}],"predecessor-version":[{"id":40720,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/posts\/40718\/revisions\/40720"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/media\/40719"}],"wp:attachment":[{"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/media?parent=40718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/categories?post=40718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eduzim.co.zw\/news\/wp-json\/wp\/v2\/tags?post=40718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}