Amazon’s AWS Chip Capacity Sells Out, AWS Inks AI Hardware Deal With $8.1B-Valued Cerebras
Amazon's AWS custom chip capacity is nearly sold out, signaling strong demand and posing a challenge to Nvidia's revenue growth trajectory. AWS has also secured a deployment agreement with AI chip vendor Cerebras, whose recent $8.1B valuation and over $10B OpenAI deal highlight expanding AI infrastructure at AWS.
1. Custom Chip Capacity Nears Full Utilization
AWS’s proprietary chip infrastructure has reached near-full capacity, with in-house CPU and AI chip availability nearly sold out, reflecting unprecedented demand and placing pressure on Amazon to expand production or secure alternative hardware sources.
2. AWS Inks Deal With $8.1B-Valued Cerebras
AWS has struck an agreement to deploy Cerebras AI processors in its data centers; Cerebras recently secured a $1.1 billion Series G at an $8.1 billion valuation and a reported $10 billion contract with OpenAI, boosting AWS’s AI compute options.
3. Strategic Implications for AWS AI Services
These moves intensify competition with Nvidia in the AI compute space, potentially enhancing AWS service performance while underscoring Amazon’s need to ramp up chip manufacturing capacity to meet surging enterprise demand.