Nvidia’s Big Tech Rivals Put Their Own A.I. Chips on the Table

Amazon’s $4 billion investment in Anthropic, a San Francisco-based start-up focusing on artificial intelligence, was driven by its interest in building specialized computer chips to compete with Nvidia, a dominant force in the A.I. chip market.

The expansion of generative A.I. has revealed the heavy reliance of big tech companies such as Amazon, Google, Meta, and Microsoft on Nvidia’s specialized chips. To reduce dependency and control costs, these companies are investing heavily in developing their own A.I. chips.

While Nvidia sold 2.5 million chips last year, major tech companies like Google and Amazon are investing billions to develop their own A.I. chips, aiming to eventually sell access to these chips as part of their cloud services.