Amazon isn’t seeing enough demand for AMD’s AI chips to offer them via its cloud

AWS logo at re:Invent 2024

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 B-17 at AWS’s re:Invent conference this week.

AWS is “not yet” seeing that high demand for AMD’s AI chips, he added.

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.