Nvidia's Lead in AI Chips Poses Challenge for AWS in Cloud 2.0 Era

The rise of AI has kicked off a new Cloud 2.0 era, but AWS doesn't have a head start this time like it did with Cloud 1.0.

Nvidia has a massive head start, with its GPUs and CUDA platform dominating AI model development for over a decade.

AWS is trying to catch up with its own AI chips like Trainium, but needs help from partners like Anthropic.

Nvidia's software maturity and developer community will make it hard for AWS to get developers to switch.

AWS needs competitive "price performance" for its AI cloud services to win, which means making its own chips so it doesn't have to pay a "Nvidia tax."