Amazon and Nvidia Launch Cloud Service for Private Data Centers

Amazon and Nvidia have launched a new cloud service called AI Factories, allowing businesses and government institutions to operate artificial intelligence (AI) systems in their own data centers. The service aims to address concerns about data sovereignty and was recently unveiled.

The AI Factories are aimed at clients facing challenges in scaling their AI projects. These challenges include substantial investments in chips, models, security, and energy, as well as the prolonged time required to build the appropriate infrastructure.

How do AI Factories work?

By opting for AI Factories, clients can implement Amazon Web Services (AWS) solutions in their own data centers, which are managed by the contracting companies. This allows access to multiple AI technologies.

• The AI Factories operate as a private region within the cloud, providing secure, low-latency access to tools, databases, and computing capabilities;
• Among the available resources is Amazon Bedrock, which offers various adaptable AI models to meet user needs;
• The service also includes AWS SageMaker AI for creating and training custom models;
• This enables companies and governments to retain full control over their data, which does not need to leave their data centers, avoiding unnecessary hardware sharing.

Clients will be able to choose between Nvidia's Blackwell GPUs and Amazon's Trainium3 chip to power their AI systems, with the promise of new processor options being available in the future.

A Nvidia representative commented: "With the launch of AWS AI Factories, companies are creating a safe and sovereign AI infrastructure, offering unprecedented computing capabilities to organizations around the world, in alignment with the strict requirements for sovereign AI."

Return to Past Trends

The current push for AI has led companies to invest in private data centers and hybrid cloud solutions, a scenario similar to what was observed in the first decade of this century, as analyzed by TechCrunch. Besides Amazon, Microsoft is also following this trend.

Microsoft has been developing its own AI factories in global data centers to meet the demands of OpenAI and plans similar infrastructures in regions with strict data regulations, including Azure Local for customers preferring this approach.

The new AI initiatives by major companies highlight the increasing demand for control and data privacy, reflecting an era of heightened awareness about digital sovereignty.