Amazon announces new cloud AI chip as Microsoft rivalry intensifies

FILE PHOTO: The logo of Amazon is seen at the company's logistics centre in Boves, France, October 6, 2021 REUTERS/Pascal Rossignol/File Photo

(Reuters) -Amazon.com on Tuesday announced a new artificial intelligence chip for its cloud computing service as competition with Microsoft to dominate the market for artificial intelligence heats up.

At a conference in Las Vegas, Amazon Web Services (AWS) Chief Executive Adam Selipsky announced Trainium2, the second generation of chip designed for training AI systems. Selipsky said the new version is four times as fast as its predecessor while being twice as energy efficient.