The chips industry is bigger than ever – currently valued at $544 billion and expected to be worth more than $1 trillion by 2032, according to Precedence Research.

While Nvidia (NVDA) has the dominant lead in the industry, holding 80% of the GPU chips market, hyperscalers like Amazon’s (AMZN) Amazon Web Services (AWS) are looking to capitalize in the space by designing their own chips.

With the release of the new Graviton 4 chip, AWS aims to create a more efficient chip that can power its own cloud – promising 35% greater computing speeds and 75% more memory bandwidth.

What does this mean for the chip race? Rather than being direct competitors with Nvidia, Patrick Moorehead, a former AMD executive and now the CEO and analyst at Moor Insights & Strategy, refers to their relationship as “co-opetition.”

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