Amazon racing to develop AI chips cheaper, faster than Nvidia’s, executives say

Inside Amazon.com’s chip lab in Austin, Texas, half a dozen engineers on a Friday afternoon put a closely guarded new server design through its paces.

The server was packed with Amazon’s artificial intelligence chips that compete with those from market leader Nvidia , Amazon executive Rami Sinno said on Friday, during a visit to the lab.

Amazon is developing its own processors to limit its reliance on costly Nvidia chips – the so-called Nvidia tax – that power some of the artificial intelligence cloud business at its Amazon Web Services, the main growth driver.