AI predicts Amazon stock price after plans to rival Nvidia chips emerge
Amazon (NASDAQ: AMZN) is aiming to challenge Nvidia’s (NASDAQ: NVDA) dominance in the artificial intelligence space by planning to launch its custom-made chips.
Reports indicate that Amazon’s Annapurna Labs is ramping up AI chip production as part of the company’s push to reduce reliance on Nvidia. The chip, dubbed Trainium 2, is nearing market launch, having undergone testing with other key industry players, such as Anthropic and Databricks.
If successful, Trainium 2 is expected to help Amazon cut AI costs—a concern raised by investors after the company revealed plans to invest more heavily in the sector during its Q3 earnings report.
To put this into perspective, Amazon projects spending $75 billion on…
