Amazon just dropped a bombshell at its Re:Invent conference

They’re partnering with Anthropic to build one of the world’s most powerful AI supercomputers.

Here’s what you need to know:

:one: The Scale:

This supercomputer will be 5x larger than what Anthropic currently uses for its most powerful models. It’s set to become the largest reported AI machine in the world once completed.

:two: The Hardware:

It will run on Amazon’s cutting-edge Trainium 2 chips, which AWS claims are 30-40% cheaper than Nvidia GPUs. A potential game-changer for anyone developing frontier AI models.

:three: Beyond the Hype:

Amazon’s also unveiling new tools to make generative AI more affordable, reliable, and scalable. Think:

• Model Distillation (for cheaper, faster AI models).

• Bedrock Agents (for automating complex tasks with multiple AI agents).

• And a next-gen chip: Trainium 3, promising 4x the performance, arriving in 2025.

Why this matters:

Amazon has quietly invested $8B in Anthropic and expanded its generative AI toolkit. While others are chasing the spotlight, Amazon’s building infrastructure that could redefine the entire industry.

Is this a game-changer for cloud computing and AI development? Or is Nvidia still the king of the hill?