Tech
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Jon Keegan

Amazon building 30 data centers in Indiana running its custom chips to power Anthropic AI

First there was xAI’s Colossus. Then there was OpenAI’s Stargate. Now Amazon has “Project Rainier.”

Tech companies are racing to build ever larger, more powerful AI data centers and betting hundreds of billions of dollars on the construction.

These massive data centers are filled with powerful GPUs to both train and run AI models, on speculation that there will be enough demand to justify the expense.

More details about Amazon’s plans are emerging, and they’re as large as the mountain they are named after. Amazon is well underway in building 30 huge data centers on one site in Indiana that will use up to 2.2 gigawatts of power, enough to power a million homes, according to a report from The New York Times.

The absurd computing capacity will be used to power AI services from its partner Anthropic, which Amazon has invested $8 billion in.

Unlike most mega-super-jumbo data centers, it won’t be filled with Nvidia’s GPUs, like OpenAI’s Stargate and Meta’s Manhattan-sized data center in Richland Parish, Louisiana.

Instead, Amazon plans on running its own custom Trainium 2 chips. While less powerful than Nvidia’s market-leading Blackwell chips, Amazon plans to cram more of the purpose-built chips in its data centers and thinks it can outperform on power and efficiency.

Amazon has said it’s on track to spend $100 billion in capex this year to build out AI infrastructure.

At Amazon’s Biggest Data Center, Everything Is Supersized for A.I.

At Amazon’s Biggest Data Center, Everything Is Supersized for A.I.

These massive data centers are filled with powerful GPUs to both train and run AI models, on speculation that there will be enough demand to justify the expense.

More details about Amazon’s plans are emerging, and they’re as large as the mountain they are named after. Amazon is well underway in building 30 huge data centers on one site in Indiana that will use up to 2.2 gigawatts of power, enough to power a million homes, according to a report from The New York Times.

The absurd computing capacity will be used to power AI services from its partner Anthropic, which Amazon has invested $8 billion in.

Unlike most mega-super-jumbo data centers, it won’t be filled with Nvidia’s GPUs, like OpenAI’s Stargate and Meta’s Manhattan-sized data center in Richland Parish, Louisiana.

Instead, Amazon plans on running its own custom Trainium 2 chips. While less powerful than Nvidia’s market-leading Blackwell chips, Amazon plans to cram more of the purpose-built chips in its data centers and thinks it can outperform on power and efficiency.

Amazon has said it’s on track to spend $100 billion in capex this year to build out AI infrastructure.

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Intel romps amid reported attempt to poach a 21-year Taiwan Semiconductor veteran

A report in the Taiwanese press that Intel is attempting to recruit a recently retired top Taiwan Semiconductor executive, Wei-Jen Lo, to lead R&D at Intel’s troubled foundry division may account for the bump in Intel shares Tuesday, one analyst told us.

A synopsis of the report from technology analysis and news outlet TrendForce News notes:

“If confirmed, the move could have significant implications for TSMC and the broader Taiwanese semiconductor industry, especially as Intel aggressively expands its foundry business with support from Washington and backing from tech giants like NVIDIA and SoftBank, the report adds.”

But some skepticism about Lo, 75 years old, returning to Intel, where he worked before joining TSMC in 2004, is also warranted, TrendForce says:

“Industry insiders cited by the report say it is unlikely he would join Intel again, given TSMC’s non-compete rules, Intel’s status as a direct competitor, Lo’s advanced age, health considerations, and his long-standing loyalty to TSMC founder Morris Chang. On the other hand, some industry observers warn that Lo, a U.S. citizen, would be difficult for TSMC to restrict, even with non-compete clauses.”

Intel shares have doubled over the last three months, since the US government took a 10% stake in the company in August. Intel is the best-performing stock in the S&P 500 over that period.

Intel Reportedly Eyes Retired TSMC Veteran Wei-Jen Lo, Advanced Node Pioneer, to Lead R&D

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“If confirmed, the move could have significant implications for TSMC and the broader Taiwanese semiconductor industry, especially as Intel aggressively expands its foundry business with support from Washington and backing from tech giants like NVIDIA and SoftBank, the report adds.”

But some skepticism about Lo, 75 years old, returning to Intel, where he worked before joining TSMC in 2004, is also warranted, TrendForce says:

“Industry insiders cited by the report say it is unlikely he would join Intel again, given TSMC’s non-compete rules, Intel’s status as a direct competitor, Lo’s advanced age, health considerations, and his long-standing loyalty to TSMC founder Morris Chang. On the other hand, some industry observers warn that Lo, a U.S. citizen, would be difficult for TSMC to restrict, even with non-compete clauses.”

Intel shares have doubled over the last three months, since the US government took a 10% stake in the company in August. Intel is the best-performing stock in the S&P 500 over that period.

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