The investment will be used to expand the cloud service provider’s infrastructure in the country, including its facilities in Osaka and Tokyo.
Nvidia’s AI-focused H20 GPUs bypass US restrictions on China’s silicon access, including limits on-chip performance and density.
At its ongoing re:Invent 2023 conference, the cloud service provider introduced several new and free updates that are expected to help enterprises optimize their AWS costs.
Nvidia’s generative AI-based foundry services on Microsoft Azure are already being used by several companies including SAP, Amdocs, and Getty Images.
New chips from Microsoft along with other custom chips from the likes of AWS, Google and Oracle, though limited in their impact initially, are expected to provide stiff competition for chipmakers such as Nvidia, AMD and Intel, analysts said.
The chipmaker could be trying to circumvent US restrictions that aim to prevent Chinese companies from stringing together lesser-powered GPUs to build compute capacity for AI-based workloads.
AI factories are data centers with infrastructure specially built for processing, refining, and transforming vast amounts of data into valuable AI models and tokens.
The acquisition is expected to help AMD compete better against chipmaker Nvidia.
As demand for generative AI technology grows, chip shortages are not the main reason behind developing custom silicon, experts say.
Japanese government funds are expected to help Micron’s factory in Hiroshima produce more advanced chips to power AI and quantum workloads.
