An AWS executive told Reuters that Amazon Web Services (AMZN.O), the world’s largest cloud computing company, may use AMD’s new artificial intelligence chips. AMD announced its AI plan at an event where Nvidia Corp (NVDA.O) dominates.
After AMD did not reveal a headline customer for their AI processor due later this year, shares fell.
In interviews with Reuters, AMD CEO Lisa Su described a strategy to win over major cloud computing customers by offering a menu of all the pieces needed to build systems to power services like ChatGPT, letting customers pick and choose using industry standard connections.
“We’re betting that a lot of people are going to want choice, and they’re going to want the ability to customize what they need in their data center,” Su said.
Dave Brown, Amazon’s vice president of elastic compute cloud, said AWS is examining AMD’s new MI300 chips for its cloud services.
“We’re still working together on where exactly that will land between AWS and AMD, but it’s something that our teams are working on,” Brown added. “That’s where we’ve benefited from some of the work they’ve done around the design that plugs into existing systems.”
Nvidia sells its processors individually and asks cloud operators to offer its DGX Cloud solution. Nvidia’s initial system partner is Oracle Corp. Brown claimed AWS denied Nvidia’s DGX Cloud collaboration.
Brown added, “They approached us, we looked at the business model, and it didn’t make a lot of sense” for AWS due to its long experience developing reliable servers and supply chain skills.
Brown said AWS likes to develop its servers from scratch. In March, AWS sold Nvidia’s H100 processor in its systems.