Amazon.com has launched a microchip aimed at machine learning, cutting down on its reliance of chip suppliers Intel and Nvidia.
Amazon is one of the largest buyers of chips from Intel and Nvidia for powering Amazon’s cloud computing unit, Amazon Web Services.
Amazon’s Inferentia chip, which will be available in 2019, is not a direct threat to Intel and Nvidia’s business because it will not be selling the chips. Amazon will sell services to its cloud customers that run atop the chips starting next year. Amazon’s decision to rely on its own chips will impact the business of Nvidia and Intel.
Intel’s processors dominate the market for machine learning inference, which analysts at Morningstar believe will be worth $11.8 billion by 2021. In September, Nvidia launched its own inference chip to compete with Intel, Reuters reported.
Graviton
Amazon on Monday announced a processor chip for its cloud unit called Graviton — powered by technology from SoftBank Group-controlled Arm Holdings. The use of Arm chips in data centers potentially represents a major challenge to Intel’s dominance in that market.
Amazon Web Services is not alone among cloud computing vendors in designing its own chips. Alphabet Inc-owned Google’s cloud unit in 2016 unveiled an artificial intelligence chip designed to take on chips from Nvidia.
Google Cloud executives have said customer demand for Google’s custom chip, the TPU, has been strong. But the chips can be costly to use and require software customization.
Google Cloud charges $8 per hour of access to its TPU chips and as much as $2.48 per hour in the United States for access to Nvidia’s chips, according to Google’s website.
Machine learning services
Amazon said customers using machine learning services include Adobe, BMW, Cathay Pacific, Dow Jones, Expedia, Formula 1, GE Healthcare, HERE, Intuit, Johnson & Johnson, Kia Motors, Lionbridge, Major League Baseball, NASA JPL, Politico.eu, Ryanair, Shell, Tinder, United Nations, Vonage, the World Bank, and Zillow.
