Web Services from Amazon The largest cloud computing provider in the world, AMZN.O, is thinking about utilizing AMD’s latest artificial intelligence CPUs.AWS executive told Reuters that the company has not yet made a final decision.
The comments were made at an AMD event when the chip maker unveiled its AI market strategy in response to rival Nvidia Corp. NVDA’s dominance of the space.O.
Following the news, AMD shares increased 1.7% in premarket trading. After AMD failed to identify a flagship customer for an AI processor expected later this year, they concluded Tuesday’s trading session 3.6% lower.
In interviews with Reuters, AMD Chief Executive Lisa Su outlined a strategy for luring large cloud computing clients by providing a menu of all the components required to assemble the kinds of systems that would power services resembling ChatGPT, but letting clients choose which they prefer using open-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.
While Dave Brown, vice president of elastic compute cloud at Amazon, stated that AWS is exploring using AMD’s new MI300 chips in its cloud services, AWS has not publicly committed to doing so.
While Nvidia does sell its processors separately, it is also asking cloud service providers if they would be interested in offering a full system that Nvidia created under the brand name DGX Cloud. For such system, Nvidia’s first partner is Oracle Corp ORCL.N.
According to Brown, AWS turned down Nvidia’s request to collaborate on the DGX Cloud product.
“They approached us, we looked at the business model, and it didn’t make a lot of sense” for AWS due to the company’s long experience in building reliable servers and existing supply chain expertise, Brown said.
According to Brown, AWS prefers to build all of its own servers. In March, AWS began selling the Nvidia H100 chip, but only in conjunction with its own systems.
