Amazon Undercuts Nvidia With Aggressive AI Chip Discounts

Amazon Web Services has a new strategy to convince cloud customers to use its artificial intelligence chip rather than chips made by Nvidia: sharply undercutting Nvidia on price.

A longtime AWS cloud customer said the company recently pitched them on renting servers powered by the chip, Trainium, that would give them the same computing power as Nvidia’s H100 chips at 25% of the price. Nvidia’s Hopper series of chips has been one of the most sought-after commodities by large cloud providers and AI developers like Microsoft, AWS and xAI.