Nvidia Faces Rising Competition in AI Chip Market

Amazon is struggling to compete with Nvidia's dominant AI chips, facing low usage and compatibility issues with its Trainium and Inferentia chips, which threatens AWS's profitability. Despite efforts to innovate and feedback from customers, Nvidia's established CUDA platform remains a significant barrier. Amazon's AI chips have seen limited adoption, and even internal projects often rely on Nvidia GPUs. The company aims to improve its AI chip offerings and work more closely with the open-source community to gain a larger market share.