SAN FRANCISCO - Amazon Web Services (AWS) and Cerebras Systems have finalized a significant partnership to integrate Cerebras's advanced AI chips into Amazon's cloud infrastructure. This collaboration aims to accelerate a range of artificial intelligence services, including chatbots and coding tools.

Cerebras, a chip startup valued at $23.1 billion, is developing AI chips designed to challenge Nvidia's market dominance. The company previously secured a substantial $10 billion deal with OpenAI.

Under the new agreement, Cerebras chips will be deployed within AWS data centers, working alongside Amazon's custom Trainium3 AI chips and its proprietary networking technology. This "divide and conquer strategy" will leverage Amazon's Trainium3 chips for the "prefill" stage of AI processing and Cerebras chips for the "decode" stage, optimizing performance for user requests.

Cerebras CEO Andrew Feldman stated that the partnership will simplify access to Cerebras technology for all AWS clients, from individual developers to major financial institutions.

Both companies declined to disclose the financial terms of the deal. Amazon anticipates its new offering, set to launch in the latter half of this year, will provide superior value compared to competing solutions.