Challenge NVIDIA Corporation's dominance! Amazon.com, Inc. (AMZN.US) plans to sell self-developed AI chips to external data centers, causing the stock price to rise by over 2%.

Amazon.com, Inc. (AMZN.US) is considering selling its in-house artificial intelligence (AI) chips to other enterprises for use in data centers, a move that signifies a significant step in challenging NVIDIA Corporation's (NVDA.US) dominance in the AI chip market. Peter DeSantis, the executive in charge of Amazon.com, Inc.'s AI business, stated in an interview that the company has started discussions with potential customers, but did not disclose specific partners. "We believe that AI infrastructure is evolving rapidly," DeSantis said. "We are always looking for ways to serve more customers." Boosted by the news, Amazon.com, Inc.'s stock price rose over 2% during Thursday's trading, reaching $242.86. In 2020, Amazon.com, Inc. launched its in-house AI acceleration chip, Trainium, aimed at providing a more cost-effective computing solution for AI model training. Currently, companies such as OpenAI, Anthropic, and Uber Technologies, Inc. (UBER.US) are using Trainium chips through Amazon.com, Inc.'s cloud service (AWS). Amazon.com, Inc. previously disclosed that as of April this year, Trainium-related projects have received commitments for over $22.5 billion in revenue. In fact, Amazon.com, Inc. has already hinted at expanding the commercial scope of Trainium. In April of this year, CEO Andy Jassy stated in a shareholder letter that it is "entirely possible" to directly sell rack-mounted servers equipped with Trainium chips to third-party customers in the future. It is widely believed in the market that this is an important move by Amazon.com, Inc. to strengthen its AI strategy and narrow the gap with competitors. With ChatGPT sparking a global AI frenzy, cloud computing giants like Amazon.com, Inc., Alphabet Inc. Class C (GOOGL.US), and Microsoft Corporation (MSFT.US) are accelerating the development of their own AI chips to reduce dependence on NVIDIA Corporation's GPUs. Meanwhile, the rapid development of the AI industry has led to the emergence of many AI-focused cloud service providers, and has fueled demand for "sovereign AI" infrastructure in regions such as Europe. "Sovereign AI" refers to data storage and computing resources being deployed within a country's borders to comply with local laws and data security requirements. In April, Alphabet Inc. Class C CEO Sundar Pichai also announced that the company would open its in-house tensor processing units (TPUs) to some customers, allowing them to deploy related hardware in their own data centers. Analysts believe that Amazon.com, Inc.'s plan to sell Trainium chips to external customers signifies a further escalation of the competition among cloud computing giants in the AI chip market. DeSantis stated that one of the reasons for Amazon.com, Inc. pushing Trainium into markets beyond AWS is the growing demand for locally controllable computing resources, particularly in overseas markets, including Europe. However, in response to calls from some European countries to reduce reliance on American tech companies, DeSantis stated that AWS business has not been substantially impacted at the moment. He also revealed that the third-generation Trainium chips, which started shipping this year, are currently "basically sold out," and the fourth-generation Trainium, expected to be launched next year, has already garnered significant customer interest. DeSantis does not agree with the concern that selling Trainium outside of AWS could erode cloud business revenue. "There is still a huge gap in computing power in the AI field," he said. "I am not worried about this issue." In addition to Trainium, Amazon.com, Inc. has also been heavily promoting its general-purpose processor, Graviton, in recent years. DeSantis revealed that Meta (META.US) has started adopting Graviton chips, and in the past three years, the number of Graviton chips deployed by Amazon.com, Inc. has exceeded any other type of processor in the company.