Amazon is taking major steps to strengthen its position in the artificial intelligence industry. The company announced that its AWS cloud unit will adopt key Nvidia technology in its upcoming AI computing chips. The move is part of Amazon’s ongoing effort to attract large AI customers and expand its influence in the cloud computing market.
AWS confirmed that it will integrate Nvidia’s “NVLink Fusion” technology into a future chip called Trainium4. While no release date was shared, the technology is expected to boost performance significantly. NVLink is known for creating ultra-fast communication links between different chips, making it one of Nvidia’s most advanced systems.
The announcement was made during AWS’s annual cloud computing conference in Las Vegas, an event attended by around 60,000 people. Nvidia has been working with several chipmakers to expand NVLink adoption, and partnerships now include Intel, Qualcomm, and AWS.
With NVLink, Amazon aims to build larger and faster AI servers. These servers will be able to communicate more efficiently, a key requirement for training massive AI models. As part of its collaboration with Nvidia, AWS will offer customers access to AI Factories—specialized AI infrastructure deployed inside their own data centers for improved speed and performance.
Nvidia CEO Jensen Huang said the partnership will help power the next wave of AI innovation, calling it a step toward an “AI industrial revolution.”
In addition to its Nvidia partnership, Amazon introduced new servers powered by its Trainium3 chips. These servers, available immediately, include 144 chips each and deliver more than four times the computing power of the previous generation. Despite the higher performance, they consume 40% less power, according to AWS executive Dave Brown.
Brown noted that Amazon plans to compete on price and performance as demand for AI hardware continues to grow. He said customers need strong performance at the right cost to adopt new chips with confidence.
The company also revealed updates to its AI models known as Nova. Nova 2 offers faster responses and supports text, image, speech, and video prompts. A version called Sonic can respond to speech with “human-like” audio replies.
Although Amazon faces competition from OpenAI, Anthropic, and Google, AWS still recorded a 20% sales increase last quarter, driven largely by AI and cloud services.
The conference also featured the launch of Nova Forge, a tool that helps businesses build custom AI models using their own data. Amazon shares rose 0.9% to $235.98 following the announcements.
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