Big Tech group’s Annapurna Labs is spending big to build custom chips that lessen its reliance on market leader

Amazon is developing Trainium 2, its next-generation AI chip, designed to reduce reliance on Nvidia and cut operational costs. Led by Annapurna Labs, the chip is expected to be unveiled next month and is already being tested by companies like Anthropic.

Semiconductor company Nvidia (NASDAQ: NVDA) has seen its share price increase nearly 1,000% since the launch of ChatGPT in late 2022. Specifically, Nvidia dominates the market for data center graphics processing units (GPUs) and accounted for 98% of shipments last year.

Amazon is reportedly working on its own AI processor to lessen its reliance on NVIDIA for AI chips. The initiative will also add pressure on Nvidia, which dominates the AI chip business. The e-commerce giant is reportedly getting ready to debut its AI chips and this comes as Amazon is attempting to claim a fair