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AWS debuted two new datacenter chips last week

The custom chips are meant to deliver higher performance at lower cost.
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Last week at the Amazon Web Services annual re:Invent conference, the company announced the rollout of two new custom computing chips—and, according to AWS, they’re cheaper, better, faster, stronger.

Quick recap: AWS, Amazon’s hyper-successful cloud computing unit—responsible for two-thirds of the company’s operating income last year—spends the big bucks on data-center chips capable of handling all sorts of machine learning. Then, it rents out that compute to its clients.

  • AWS has been working on bringing that chip manufacturing “in-house” since 2015, when it purchased an Israeli semiconductor startup for a rumored ~$350 million. On Tuesday, it announced the chip’s newest generation.

The new goods

First up is the Gravitron 3, an Arm–based chip that AWS says is 25% faster for general workloads than the previous version, and 3x faster for typical machine learning tasks—plus, the company claims it saves 60% of the energy. Its chief competitors: chips from Intel and AMD.

Then there’s Trn1, a new AWS “instance”—i.e., a virtual server that allows people to connect and run applications using Amazon’s cloud infrastructure. With bandwidth up to 800 gigabytes/second, according to Amazon, it’s 2x faster than what’s currently available.

  • That’s partly because Trn1 is powered by Trainium, the buzzy chip AWS debuted last year to—as its name suggests—supercharge the training of deep learning models.
  • AWS says Trn1 is especially created for AI tasks like image recognition, forecasting, fraud detection, and natural language processing. And that it’ll train models for ~40% less $$ than Nvidia’s leading chip.

But, but, but: Despite the cost and performance comparisons AWS is floating, it still has to maintain a healthy working relationship with key competitors like Nvidia, which AWS is currently working with to bring Android game streaming to mobile devices.

So AWS is treading lightly: Execs told Reuters that the new chip rollouts are all in the name of healthy market competition and bringing performance costs down.

Keep up with the innovative tech transforming business

Tech Brew keeps business leaders up-to-date on the latest innovations, automation advances, policy shifts, and more, so they can make informed decisions about tech.