Amazon Challenges Nvidia with Discounted AI Chip Trainium

Mar 18, 2025

Amazon Web Services (AWS) is offering discounts on its artificial intelligence (AI) chips to compete with Nvidia (NVDA, Financial) and attract more customers, according to a report by The Information. AWS is reportedly providing server rentals powered by their Trainium chip, which offers computing capabilities similar to Nvidia’s H100 semiconductor but at only 25% of the price. This strategic move aims to draw tech giants, including Apple (AAPL), who are experimenting with the latest version of the Trainium chip as an alternative to Nvidia's offerings.

AWS has been actively targeting companies seeking new solutions beyond Nvidia, especially as the demand for AI applications continues to surge. By offering competitive pricing and comparable performance, AWS could significantly impact Nvidia's dominance in the AI chip market.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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