Uber is the latest to be won over by Amazon’s AI chips
Uber pivots from Oracle and Google Cloud, signing a major new deal with AWS for its custom AI and ARM chips.
Amazon Web Services (AWS) has secured a significant expansion of its cloud contract with Uber, marking a strategic pivot for the ride-sharing giant. Uber, which had famously signed major multi-year deals with Oracle Cloud Infrastructure (OCI) and Google Cloud Platform in 2023 to move off its own data centers, will now run more of its workloads on AWS's custom silicon. The new deal specifically involves expanding use of AWS's Graviton processors (low-power, ARM-based server CPUs) and initiating a trial of Amazon's latest Trainium3 AI accelerator chips, designed to compete with Nvidia's offerings.
This move is seen as a competitive blow to AWS's cloud rivals, Oracle and Google, and highlights the growing importance of in-house chip design in winning major customers. Uber had previously highlighted its use of Ampere's ARM chips on Oracle's cloud, but Oracle sold its stake in Ampere in late 2024. The deal underscores a broader trend where major AI players like Anthropic, OpenAI, and Apple are also increasing their reliance on AWS, attracted by its custom AI hardware. Amazon CEO Andy Jassy has stated that the Trainium chip business is already a multi-billion-dollar revenue stream.
- Uber expands AWS contract to trial Trainium3 AI chips and use more Graviton ARM CPUs, shifting from prior commitments to Oracle and Google Cloud.
- The deal represents a strategic win for AWS's in-house silicon, competing directly with Nvidia and challenging cloud rivals Oracle and Google.
- Uber joins Anthropic, OpenAI, and Apple as major tech companies leveraging AWS's custom AI chips, validating Amazon's multi-billion-dollar chip business.
Why It Matters
This signals a major shift in cloud competition, where custom AI chips are becoming a critical factor in winning enterprise contracts from rivals.