Amazon's (NASDAQ:AMZN) cloud division, Amazon Web Services (AWS), is reportedly considering the use of AMD's (NASDAQ:AMD) newest artificial intelligence chips, as reported by Reuters late Tuesday.
According to an AWS executive, the world's largest cloud computing company is considering AMD's latest AI technology - potentially boosting AMD's inroads into the market currently dominated by rival Nvidia (NASDAQ:NVDA) - but is yet to make a final decision.
Either company is yet to make an official comment, although AWS's VP of elastic compute cloud Dave Brown did confirm there are negotiations: "We're still working together on where exactly that will land between AWS and AMD, but it's something that our teams are working together on."
AMD recently held an event where the company outlined its AI strategy and unveiled its newest AI products. The company disclosed the specs of its upcoming AI chip, which, 'on paper,' outperforms Nvidia's current best offerings, although it did not name any major clients for the product, leaving investors in the unknown.
Shares of AMD are gaining around 1.7% in pre-market on Wednesday following the announcement, extending an over 94% gain YTD.
Still, the seemingly impressive performance pales when compared to its rival Nvidia - the stock is up 187% YTD, boasting a 35% gain in the past few weeks driven by the AI-related 'monster' revenue guidance hike.