Amazon just announcing a new partnership with Silicon Valley darling Databrics

five-year deal in which the startup will use Amazon's custom AI chips to power its

model training.

R K Rooney has that story for today's tech check. Hey,

Carl, good morning. So this is really part of Amazon's long-term

strategy in AI. It's looking to compete with NVIDIA for custom

semiconductors by offering a cheaper option here and it's trying to keep its

position as a top cloud provider as Microsoft and Google are trying the same strategy.

As part of this five-year deal, you mentioned Databrics has agreed to use Amazon's custom chips. They're called

Trainium AI chips and they're going to power the training of Databrics AI models.

For context, that's going to help companies customize their AI models or build their own.

So Databrics as part of that bought Mosaic ML last year for 1.3 billion dollars.

And the big draw here to Amazon chips, its costs.

So consensus in Silicon Valley at least has been

that Amazon's chips they're not as powerful at least as in videos which has

been the gold standard you've seen it reflected in video stock price but they're also

expensive so Amazon's Tranium is seen in video stock price, but they're also expensive.

So Amazon's Tranium is seen as the discount version.

Amazon says customers pay 40% less than they would

if they used other hardware out there.

I talked to Dan Ives of Wed Bush this morning. He told me because

Amazon is relatively new at this, their chips, quote, don't sell themselves. So Amazon

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