From November 26 to November 30, the AWS re: Invent 2018 conference is held in Las Vegas. This is an annual IT conference from Amazon dedicated to the company’s discoveries in the field of artificial intelligence, web services and information security.
As the world’s largest cloud solution provider, AWS (Amazon Web Service) re: Invent Conference attracts tens of thousands of developers and industry insiders from around the world each year. At last year’s conference, Amazon Cloud presented more than 25 developments in a variety of consumer IT-areas. This year the event was equally impressive. After the launch of the first self-developing ARM architecture of cloud servers, CPU Graviton literally the day before yesterday, Amazon Cloud CEO Andy Yassi immediately announced his first cloud chip using AI (artificial intelligence) – Inferentia.
Amazon introduced its first cloud computing AI chip. With the launch of this machine learning chip, Amazon enters the market where Intel and NVIDIA dominate and run the show. The company hopes to increase profitability in this direction in the next few years. Today, Amazon is the largest buyer of Intel and NVIDIA, and the chips from these manufacturers help the Amazon Web Service business related to cloud computing. Amazon introduced its first cloud computing AI chip. But now Amazon is starting to develop its own chips. Not only will Intel and NVIDIA lose such a client, they can also get a fairly large competitor with great financial resources. But at the moment, Amazon chips will not directly threaten their business, because the company will not sell them. However, for cloud computing services sold by Amazon, they will start using their chips next year.
Intel processors currently dominate the machine learning market, and Morningstar analysts expect the market to reach $ 11.8 billion by 2021. In September of this year, NVIDIA also launched its own chip to compete with Intel.
In addition to machine learning chips, Amazon also launched the Graviton processor chip for its cloud computing division. The chip uses ARM technology. This architecture is currently used in smartphones and many companies are trying to apply it to data centers, which could ultimately challenge Intel’s market dominance.
Amazon introduced its first cloud computing AI chip. Jeff Bezos is not the only cloud computing provider that develops its own chips. Google Cloud Computing also demonstrated in 2016 an artificial intelligence chip that competes with NVIDIA.
Custom chips are more expensive in design and production, and analysts say that such investments will help large technology companies save on research and development costs.
Google’s cloud computing executives said customer demand for Google’s custom chips is high. But the chip itself is quite expensive to use and requires software configuration. The company charges $ 8 per hour for TPU chips, while the NVIDIA chip charges only $ 2.48 per hour.