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| Amazon is expanding the ambitions of its network segments |
The report shows that Amazon is developing custom chips for its devices from the switch used to transmit network data.
The chip business is the result of Amazon's acquisition of chip maker Annapurna Labs for $ 350 million in 2015.
These chips can help Amazon improve its internal infrastructure and Amazon web services.
Amazon's development of a switch chipset can also help solve infrastructure-related issues and bottlenecks, especially if a custom design for the software they're running on is required.
Amazon built its own switched network switches, but Broadcom has trusted to get the chips to power these devices.
The company certainly hopes to gain full control over these devices, especially given the importance of its web services business.
Amazon may also offer services that were not previously available. These services are supported by the new switch devices.
It is said that these chips are not the first niche silicone products from Amazon, as the company previously worked with MediaTek to develop chips for Echo smart speaker products designed to make Alexa more responsive.
It also has its own dedicated machine learning chip called Trainium, which will soon be available to Amazon Web Services customers.
The company also hopes to build its own chips to support the backbone of its network.
With reports that Google and Microsoft are making custom processors for their devices, custom chipset design is quickly becoming an issue for large tech companies.
Apple has been doing this for years, and the M1 Macs are an example of how the company's products can control both hardware and software.
While Amazon is not a giant when it comes to smartphones or computers, it is gigantic when it comes to cloud computing, as the company is pushing for new chipsets.