Amazon Web Services may begin using new artificial intelligence chips made by Advanced Micro Devices Inc, according to reports.
The company has not announced a final decision, but that hasn’t stopped AMD shares from climbing 2.3% in premarket trading Wednesday.
The company’s remarks came during an AMD event in which it discussed its strategy for the AI market.
Amazon adopting AMD chips would be a significant move in an industry currently dominated by Nvidia. The tech giant hasn’t publicly referenced AMD's new MI300 chips, but Dave Brown, vice president of elastic compute cloud at Amazon, said AWS is considering them, Reuters first reported.
"We're still working together on where exactly that will land between AWS and AMD, but it's something that our teams are working together on," Brown said. "That's where we've benefited from some of the work that they've done around the design that plugs into existing systems."
Nvidia, for its part, has pitched cloud providers on an all-in-one system called DGX Cloud, rather than selling chips on their own. Amazon reportedly balked at this idea, Brown said.
"They approached us, we looked at the business model, and it didn't make a lot of sense" for AWS due to the company's long experience in building reliable servers and existing supply chain expertise, Brown said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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