One of the key terms of the deal would require the company to use Amazon’s AI chips. These discussions come at a time when major tech companies are sharply increasing their investments in artificial intelligence infrastructure.
The issue is that although Amazon claims its Trainium chips offer 30–40% better price-performance compared to Nvidia products, there are some real-world challenges. For example, companies like Cohere and Stability AI have reported that these chips underperform compared to Nvidia H100 and experience latency issues. Currently, OpenAI’s $38 billion contract with AWS covers only Nvidia GPUs and does not include Amazon’s own chips.
If this new deal goes through, OpenAI would reduce its dependence on Nvidia and diversify its infrastructure. This could also strengthen Amazon’s position in the chip market and accelerate the adoption of future Trainium 3 and 4 models.
