Amazon Launches Trainium 2 to Rival Nvidia

Amazon is set to launch its new AI chip, Trainium 2, as it ramps up efforts to compete with Nvidia in the AI processor market. Developed by Annapurna Labs, which Amazon acquired in 2015, the Trainium 2 chip is designed to improve AI model training efficiency and is already being tested by several companies, including Anthropic and Databricks. Amazon aims to reduce its dependency on Nvidia by offering a cost-effective alternative, with its Inferentia AI chips reportedly 40% cheaper to run. This move is part of Amazon's broader strategy to expand its AI capabilities and infrastructure, reflecting a significant increase in its capital spending, expected to reach $75 billion in 2024. Additionally, Amazon's philanthropic initiative, Amazon Future Engineer Makerspace, aims to bridge the technology literacy gap in India by providing hands-on learning in robotics and AI to underserved students. This initiative underscores Amazon's commitment to fostering technological skills in emerging markets.