Amazon (AMZN) Web Services (AWS) has entered the semiconductor market, developing its own chips to train AI models in competition with industry leaders like Nvidia (NVDA). At the 2024 Goldman Sachs Communacopia and Technology Conference, Yahoo Finance reporter Madison Mills interviewed AWS CEO Matt Garman to break down AWS's chip strategy.

Garman acknowledges Nvidia's strong market position, calling it "a great platform" with a large customer base. However, he emphasizes that the chip market is vast, with "potential for multiple options," stressing the importance of customer choice.

AWS's semiconductors, Inferentia and Trainium, are "specifically built for AI inference,"Garman explains. These chips offer particular value for small-scale inference tasks and helping customers reduce costs. He also notes that AWS is working on improving these chips to train large language models.

"We think that there's this really large market segment and there's room enough for customers to be using the best product for the use case for a long time," Garman told Yahoo Finance. Although he expressed support for other chipmakers, stating that AWS does not expect to become "fully reliant" on its own chips.

Catch Yahoo Finance's full interview with Matt Garman here.

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This post was written by Angel Smith

Editor's note: This post has been updated to fix an incorrect name.