“[Digital Daily Reporter Lee Sang-il] Amazon Web Services (AWS) has unveiled its proprietary AI chip ‘Trainium3’ with enhanced power efficiency, applying pressure on the Nvidia-centric market. AWS announced this new product at the re:Invent 2025 event held in Las Vegas, USA on December 2, highlighting that it significantly reduces AI training and inference costs.
The Trainium3 features a fourfold performance improvement and a 40% reduction in energy consumption compared to its predecessor. AWS explained that utilizing this chip can achieve up to 50% cost savings compared to Nvidia’s graphics processing units (GPUs). In a situation where the power burden of data centers is increasing, improving the performance-to-power ratio is emerging as a core competitive factor for major tech companies. AWS CEO Matt Garman stated, ‘Trainium3 demonstrates industry-leading cost efficiency.’
The AI chip market remains dominated by Nvidia with an 80-90% market share, but major tech firms like Google and Amazon are competing to secure alternatives through customized chips with a focus on power efficiency. Google recently unveiled its TPU ‘Ironwood’, emphasizing power efficiency, and is attempting to expand its supply towards Meta, highlighting the increasingly defined competitive landscape.
AWS has also initiated the development of the ‘Trainium4’, aimed at achieving triple the performance of Trainium3. The successor is expected to support Nvidia’s ‘NVLink’, a strategy likely intended to reduce the transition burden for Nvidia GPU users. Additionally, AWS unveiled its AI model ‘Nova2’ and enterprise model development service ‘Nova Forge’ to further its AI infrastructure competition.”