(Bloomberg) — Amazon.com Inc. will use chips from startup Cerebras Systems Inc. in conjunction with its own Trainium processors, a combination the companies say will allow them to run AI software more efficiently.
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Amazon Web Services, the largest provider of cloud computing capacity, plans to begin offering new services under the agreement in the second half of 2026, according to a statement Friday. Financial terms were not disclosed.
This partnership marks the latest effort to meet the strong demand for AI computing infrastructure. Amazon Web Services Vice President Nafea Bshara said the two companies have been preparing for this partnership for several years. AWS intends to introduce as many chips as possible if there is demand, he said.
For Cerebra, which plans an initial public offering, having Amazon as a customer will help raise its profile in a huge potential market. AWS is the first hyperscaler and largest data center operator to commit to using Cerebras.
The two companies’ chips work together in so-called inferential computing, the process of running AI software and generating answers to incoming queries. In a unique arrangement, Amazon’s Trainium 3 silicon works to prefill, or understand, user prompts. Cerebras’ Wafer Scale Engine takes over and generates the answer.
This so-called fragmented work usually has its drawbacks. Communication between different components slows down the process. In this case, both companies aim to gain an advantage by using specialized chips that can process inference tasks more quickly. This improvement is especially noticeable in areas that require user interaction, such as writing computer code that takes place in multiple stages.
Trainium-only services are likely to still be cheaper, but new composite chip products will become more attractive as “time is money,” Bushara said.
Cerebras CEO Andrew Feldman, who has signed up some of the biggest users of AI hardware as customers, sees this entry as validation of the company’s unusual chip design.
Cerebras has pioneered a unique approach to processing information using giant chips that can process large amounts of data at once. The company is seeking widespread adoption of its technology to compete with market leader Nvidia. The startup also operates its own data center, which showcases the capabilities of its components and generates recurring revenue.
