- The company is preparing to release new proprietary AI chips - This will reduce reliance on Nvidia and boost profits - Proprietary AI chips will cut costs for Amazon and AWS customers - Amazon's capex through 2024 will be $75 billion. - Most of the spending will be on tech infrastructure. - However, Amazon's spending for 2025 could be even higher - Development will be based on Annapurna Labs technologies - Amazon acquired the startup about 9 years ago for $350 million - Amazon is preparing to unveil the new Trainium 2 in December - Trainium 2 will show a 4x performance boost - The new Trainium 2 chip is already being tested by AI startup Anthropic - Databricks, Deutsche Telecom, Ricoh and others are also testing - Amazon wants to become the market leader in a market dominated by Nvidia - Inferentia chips already 40% cheaper to generate answers - AWS and Annapurna have so far failed to weaken Nvidia's position