Amazon announces new cloud AI chip as Microsoft rivalry intensifies

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(AMZN.O) on Tuesday announced a new artificial intelligence chip for its cloud computing service as competition with Microsoft (MSFT.O) to dominate the market for artificial intelligence heats up...

At a conference in Las Vegas, Amazon Web Services (AWS) Chief Executive Adam Selipsky announced Trainium2, the second generation of chip designed for training AI systems..

The proliferation of custom chips comes amid a scramble to find the computing power to develop technologies such as large language models that form the basis of services similar to ChatGPT...

The cloud computing firms are offering their chips as a complement to Nvidia (NVDA.O), the market leader in AI chips whose products have been in short supply for the past year..

Both AWS and Microsoft are using technology from Arm Ltd (O9Ty.F), in their chips, part of an ongoing trend away from chips made by Intel (INTC.O) and Advanced Micro Devices (AMD.O) in cloud computing..