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Amazon Expands Trainium AI Chip Strategy Beyond AWS

Amazon.com Inc. (NASDAQ: AMZN ) stock rose on Thursday as investors returned to mega-cap technology stocks and reacted to a report that the company is exploring sales of its custom artificial intelligence chips outside Amazon Web Services. The Nasdaq Composite gained 2.3%, while the S&P 500 advanced 0.8%. AI Chip Expansion Adds Fresh Catalyst Amazon’s gains came as investors embraced a broader risk-on trade. Technology stocks led the market with a 2.9% advance, while seven of the 11 S&P 500 sectors traded higher. The rally also followed a Bloomberg report that Amazon is in talks to sell its custom Trainium AI chips for deployment in third-party data centers. The move would expand the company’s effort to compete with NVIDIA Corp. (NASDAQ: NVDA ) in the AI infrastructure market. Amazon AI chief Peter DeSantis told Bloomberg the company has started discussions with potential customers but declined to identify them. “We view AI infrastructure as rapidly evolving,” DeSantis said. “And we’re constantly looking at ways to get to more customers.” According to Bloomberg, demand for sovereign AI infrastructure is growing, particularly outside the United States. DeSantis said Amazon Web Services has not been affected by Europe’s efforts to reduce its dependence on U.S. technology. He added that Amazon’s third-generation Trainium chips are “largely sold out,” while customer interest is already building for the fourth-generation chips ... Full story available on Benzinga.com