Amazon Custom Chip Capacity Sells Out as AWS Nears $10B Cerebras Deal
Amazon’s in-house AI chip capacity for AWS is nearly sold out, signaling robust demand for its custom processors. AWS also secured a reported over $10 billion agreement to deploy Cerebras Systems hardware in its data centers following Cerebras’ IPO filing.
1. In-house Chip Capacity Nearly Sold Out
Amazon’s custom AI chip units for AWS have almost reached full capacity, reflecting strong enterprise demand for its proprietary processors and potentially limiting near-term availability for new deployments. This shortage underscores Amazon’s strategy to reduce reliance on third-party chipmakers and improve cloud service margins.
2. AWS Secures Major AI Deal with Cerebras
AWS has entered an agreement exceeding $10 billion to incorporate Cerebras Systems hardware in its data centers, following Cerebras’ IPO filing scheduled for mid-May. The partnership diversifies AWS’s AI infrastructure suppliers and strengthens its high-performance computing offerings against competitors.