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Amazon Plans In-House AI Chips to Cut Costs
Amazon (AMZN) intends to utilize its proprietary Trainium and Inferentia processors for developing artificial intelligence models. This move aims to significantly reduce costs associated with AI technology development, as revealed in a Wall Street Journal report, and is part of a broader strategy to gain more control over its AI technology stack and manage expenses for large-scale model training and deployment. The company plans to dedicate a substantial portion of its $200 billion capital expenditure in 2026 towards AI, processors, and related infrastructure.