Amazon challenges Nvidia to offer free computing resources

• Amazon is offering free computing power to artificial intelligence researchers in a bid to challenge Nvidia
• It will offer a line of credit to researchers who want to take advantage of Trainium to use its $110 million cloud data center

What happened

Amazon’s cloud computing division announced on Tuesday (November 12) that it will offer free computing power to researchers wishing to use its custom AI chips. Amazon aims to challenge Nvidia’s popularity among researchers with this move.

AWS stated that it will provide researchers who wish to utilize Trainium, its custom AI chip, with credits for its $110 million cloud data centers. Amazon designed Trainium to compete with chips from Nvidia and Advanced Micro Devices in AI model development.

Amazon’s free computing resource program is aimed at AI researchers globally. Especially the small companies and research teams that lack the funds to purchase expensive hardware. To access these resources, researchers must apply and receive cloud computing support based on their project requirements.

Gadi Hutt, Head of Business Development for AWS AI Chips, explained that this approach is designed to attract large clients. They may be willing to make small adjustments. These adjustments could lead to significant gains when using tens of thousands of chips in a single application.

Also read: Amazon is taking on Nvidia with an AI freebie

Also read: Amazon offers free computing power to AI researchers, aiming to challenge Nvidia

What it’s important

Amazon’s initiative to provide free computing resources is not only crucial for AI researchers. It could also profoundly impact the future landscape of the entire AI and cloud computing industries. AI research, especially the demand for deep learning and large-scale model training, typically requires significant computational power. While Nvidia’s Gpus dominate the space.

However, the high cost of purchasing this hardware has made it difficult for many small companies and startups to engage in cutting-edge AI development. These companies often rely on cloud platforms like AWS to provide flexible computing resources. For example, a startup like Runway, which focuses on developing AI-powered video creation tools, might not be able to innovate and expand its market as it has today without resources from platforms like AWS.

By offering free computing resources, Amazon directly challenges Nvidia’s dominance in the hardware market. This move could encourage more startups and researchers to turn to cloud-based solutions rather than investing in expensive dedicated hardware. This strategy helps lower the technological barrier, facilitating market entry for smaller companies and driving technological innovation.