According to the article, Amazon Web Services (AWS) has determined that there is not enough demand for AMD’s AI chips to warrant offering them on its cloud platform in 2024. Instead, AWS plans to continue relying on Nvidia’s chips for its AI workloads. The decision is a setback for AMD, which has been trying to gain a foothold in the lucrative AI chip market dominated by Nvidia. AWS cited a lack of customer interest and software support for AMD’s AI chips as the primary reasons for not offering them. The move highlights the challenges AMD faces in competing with Nvidia’s entrenched position in the AI chip space. While AMD’s chips are generally less expensive, Nvidia’s offerings are widely adopted and supported by major AI software frameworks. The article suggests that AMD may need to invest more resources in developing AI-specific chips and cultivating a robust software ecosystem to gain traction in this market.
Source: https://www.businessinsider.com/amazon-not-enough-demand-amd-ai-chips-aws-nvidia-2024-12