Amazon Unveils Trainium 3 AI Chip, Strengthens Future Collaboration With Nvidia
- Chalani Himasha
- 6 hours ago
- 2 min read
Himasha Dissanayake, JadeTimes Staff
H. Dissanayake is a Jadetimes news reporter covering Technology
Image Source: First post
Amazon has officially launched its new Trainium 3 AI chip, marking another major step in the company’s efforts to challenge Nvidia’s dominance in the AI processor market. The announcement was made during the AWS re:Invent conference in Las Vegas, where Amazon highlighted significant performance gains and future hardware plans.
Alt text: Amazon announces its next-generation Trainium 3 AI chip and deepens future technology collaboration with Nvidia.
Amazon says the Trainium 3 chip delivers up to four times the performance of its predecessor, enabling enterprises to train AI models faster and at lower cost. Major companies—including Anthropic, Karakuri, Metagenomi, NetoAI, Ricoh, and Splash Music—are already reporting training cost reductions of up to 50%. Amazon Bedrock is also running production workloads using Trainium3, underscoring its readiness for large-scale deployment.
The growing demand for powerful AI infrastructure has intensified competition among cloud providers. While AWS remains the global market leader, it faces rising pressure from Microsoft Azure and Google Cloud. Google, in particular, has captured investor attention with its Gemini 3 model and increasing interest in its custom AI chips, including a reported exploration by Meta Platforms.
To maintain its competitive edge, Amazon emphasized that Trainium hardware is central to its strategy of delivering lower operational costs for AI development. CEO Andy Jassy recently described Trainium as a “multibillion-dollar business” growing at 150% quarter over quarter.
Looking ahead, Amazon also confirmed that its upcoming Trainium4 chip will integrate Nvidia’s NVLink Fusion technology—signaling deeper collaboration between the two tech giants. This integration will combine AWS custom silicon with Nvidia’s high-speed interconnects and MGX rack architecture to boost performance and accelerate cloud-scale AI capabilities.
On the market front, Amazon shares edged up to 235.72 on Tuesday. The company is experiencing a busy week, driven by strong Cyber Monday sales and the launch of a new ultrafast delivery service in Philadelphia and Seattle. Despite recent stock volatility, Amazon maintains a strong IBD Composite Rating of 90, placing it among the top-tier growth stocks.
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