Initially hesitant, AWS was forced to accept the offer, not wanting to risk being “cut out” by Nvidia, a critical supplier, when competitors adopted DGX Cloud (a service that rents Nvidia-based servers).
Despite AWS’s public statements about the collaboration, underlying tensions are clearly felt, experts say. Nvidia’s aggressive tactics make things even more interesting: Customers must prove they have the infrastructure to host GPUs and comply with Nvidia’s server rack design specifications, thus locking them into the company’s ecosystem.
This strategy strengthens Nvidia’s position, but also fuels the competitive spirit: AWS is reportedly developing its own AI accelerators Trainium and Inferentia. And Nvidia’s dominance hasn’t gone unnoticed by regulators: The U.S. Department of Justice is preparing an antitrust investigation.
Source: Ferra
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