Most AI training uses costly Nvidia GPUs. Amazon aims to enhance its custom chips to cut customer costs, boost supply-chain control, and reduce its reliance on Nvidia, a key cloud partner. Apple is one of the customers of AWS’s Trainium chips, a move suggesting that non-Nvidia-training approaches can work on data processing.

The new servers, dubbed Trn2 UltraServers, will target Nvidia Corp’s NVDA flagship server, packed with 72 of its latest Blackwell chips, Reuters reports. Nvidia commands the AI chips market with over 70% market share. Amazon Web Services disclosed Apple Inc AAPL as a customer for the AI chips during the event.

Amazon.com's cloud unit on Tuesday showed new data center servers packed with its own AI chips that will challenge Nvidia , with Apple coming aboard as a customer to use them.

As reported by CNBC, Apple’s senior director of machine learning and artificial intelligence, Benoit Dupin, made a surprise appearance

Both AWS and Nvidia are rushing to get their flagship AI offerings to market amid booming demand, though Nvidia shipments have been limited by supply chain constraints.

Apple (NASDAQ:AAPL) is using the custom artificial intelligence chips from Amazon's (NASDAQ:AMZN) cloud computing unit and is evaluating its latest AI chip for pre-training models, CNBC reported, citing an executive that touted Amazon Web Services in a surprise endorsement.

Amazon says it is able to connect a greater number of chips together than Nvidia, helping customers save cost.

Apple is currently using Amazon Web Services’ custom AI chips for services like searching and will evaluate if its latest AI chip can be used to pre-train its AI models like Apple Intelligence.