ARTICLE
27 December 2024

Amazon To Offer Researchers Free Computing Credits

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Goodmans LLP

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Goodmans is internationally recognized as one of Canada’s pre-eminent business law firms. Based in Toronto, the firm has market-leading expertise in M&A, corporate and transaction finance, private equity, real estate, tax, restructuring, litigation, intellectual property and other business-related specialties.
Amazon Web Services ("AWS") is making waves in the AI industry by offering free computing credits to researchers who use its custom AI chips.
Canada Technology

Amazon Web Services ("AWS") is making waves in the AI industry by offering free computing credits to researchers who use its custom AI chips. With cloud data center credits valued at over $110 million, AWS is focused on developing AI models using its chip, Trainium, to enhance its competitiveness against Nvidia, Advanced Micro Devices, and Google Cloud. Through this research credit program, Amazon aims to increase the adoption of its chips within the industry and maintain its substantial share of the cloud computing market.

Currently, Nvidia leads the AI chip industry. Most developers using Nvidia's chips program the hardware through Nvidia's proprietary software "Cuda." This means most developers do not program the chips directly. In contrast, Amazon is looking to publish guidance on its chips which will enable customers to program chips directly, rather than relying on an intermediary software like Cuda.

The industry implications are substantial. Amazon's push for open programmability could compel competitors to adopt more flexible approaches, reducing reliance on proprietary ecosystems. This may erode Nvidia's long-held advantage in AI software integration. Furthermore, AWS' investment highlights the growing demand for diverse AI hardware solutions. This may prompt other technology giants to accelerate their innovative efforts in custom chip development.

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