Amazon has entered into a five-year partnership with startup Databricks, which aims to reduce the cost of building artificial intelligence capabilities for businesses. Databricks will use Amazon's Trainium AI chip to power its service, helping businesses customize or build AI models. Amazon claims it's cheaper to use its own chips than Nvidia's Gpus, which dominate the market.

For Amazon, the partnership means further solidifying its position as a neutral AI technology provider that enables businesses to use and customize multiple AI models on its platform. Databricks makes money by providing analytics, AI and other cloud software services that leverage AI data to help companies build technology tools. Databricks is currently valued at $43 billion.

Amazon's AI chip strategy emphasizes cost-effectiveness, and Dave Brown, vice president of computing and Web services at AWS, said the cost of using Trainium chips is about 40 percent lower than using other hardware. This advantage has attracted a number of companies, including Anthropic, Airbnb, Pinterest and Snap, to use Amazon's custom AI chips.

Although Amazon's innovative position in AI is not as widely recognized as that of Microsoft and Google, by providing cost-effective AI chips, Amazon is working hard to prove itself competitive in this field. The partnership also reflects the expectations of enterprise technology executives for a return on investment in AI, and the market demand for more efficient and lower cost AI solutions.

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