The Twin Engine Strategy That Propels AWS Is Working Well
Summary
Amazon effectively integrates AI across its operations, including online retail, transportation, and advertising, similar to Google and Meta Platforms. Timothy Prickett Morgan explores how this twin-engine strategy enhances the performance of Amazon Web Services (AWS).
Key Insights
What is the 'twin engine strategy' that AWS is using for compute?
The twin engine strategy refers to AWS's dual approach of developing its own custom compute engines, such as Graviton CPUs and Trainium AI XPUs, alongside utilizing third-party engines like those from Nvidia, allowing AWS to balance innovation, cost control, and pressure on suppliers while investing heavily in AI infrastructure.
Sources:
[1]
How are AWS's custom compute engines performing?
AWS's custom compute engines, including Graviton Arm server CPUs and Trainium1/Trainium2 AI XPU engines, reached a $10 billion annualized run rate by the end of 2025, driven significantly by a fleet of 1.4 million Trainium2 chips, contributing to renewed revenue growth.
Sources:
[1]