Amazon says customers can save 30% to 40% by using its AI chips over Nvidia's GPUs.Amazon (AMZN 0.89%) is a leading artificial intelligence company that incorporates AI into its vast e-commerce and advertising platforms, as well as being the world's largest cloud computing company. However, it is now taking a key step in expanding its AI empire by rolling out a new AI chip that could significantly challenge the dominant position held by chipmaker Nvidia (NVDA 0.49%).Amazon's Trainium3 chip is the latest mov ...

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Core Insights - Amazon Web Services (AWS) has launched Trainium3 UltraServers, powered by the new Trainium3 chip, aimed at enhancing AI model training and deployment efficiency at lower costs [1][6]. Performance Enhancements - Trainium3 UltraServers offer up to 4.4 times more compute performance, 4 times greater energy efficiency, and nearly 4 times more memory bandwidth compared to Trainium2 UltraServers [6]. - The servers can scale up to 144 Trainium3 chips, delivering up to 362 FP8 PFLOPs with 4 times lower latency, facilitating faster training of larger models and serving inference at scale [6]. Cost Efficiency - Customers utilizing Trainium are experiencing reductions in training and inference costs by up to 50% [6]. - Decart has achieved 4 times faster inference for real-time generative video at half the cost of GPUs, while Amazon Bedrock is already handling production workloads on Trainium3 [6].