- AWS has not committed to offering cloud access to AMD’s AI chips in part due to low customer demand.
- AWS said it was considering offering AMD’s new AI chips last year.
- AMD recently increased the sales forecast for its AI chips.
Last year, Amazon Web Service said it was considering offering cloud access to AMD’s latest AI chips.
18 months in, the cloud giant still hasn’t made any public commitment to AMD’s MI300 series.
One reason: low demand.
AWS is not seeing the type of huge customer demand that would lead to selling AMD’s AI chips via its cloud service, according to Gadi Hutt, senior director for customer and product engineering at Amazon’s chip unit, Annapurna Labs.
“We follow customer demand. If customers have strong indications that those are needed, then there’s no reason not to deploy,” Hutt told Business Insider at AWS’s re:Invent conference this week.
AWS is “not yet” seeing that high demand for AMD’s AI chips, he added.
AMD shares dropped roughly 2% after this story first ran.
AMD’s line of AI chips has grown since its launch last year. The company recently increased its GPU sales forecast, citing robust demand. However, the chip company still is a long way behind market leader Nvidia.
AWS provides cloud access to other AI chips, such as Nvidia’s GPUs. At re:Invent, AWS announced the launch of P6 servers, which come with Nvidia’s latest Blackwell GPUs.
AWS and AMD are still close partners, according to Hutt. AWS offers cloud access to AMD’s CPU server chips, and AMD’s AI chip product line is “always under consideration,” he added.
Hutt discussed other topics during the interview, including AWS’s relationship with Nvidia, Anthropic, and Intel.
An AMD spokesperson declined to comment.
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Editor’s note: This story was first published on December 6, 2024, and was updated later that day to reflect developments in AMD’s stock price.
