- AWS AI Factories installs Amazon/Nvidia hardware in customer facilities
- They are designed to meet strict data sovereignty and privacy requirements.
- The return to on-premises has gained ground in the AI era
Amazon Web Services has revealed more information about its AI Factories – a full-stack AI infrastructure located in a customer’s data center.
This means that customers would provide the facilities and power, with Amazon’s cloud division providing and managing the AI systems, in a way likening AI factories to a private AWS region.
In addition to giving organizations more control over data sovereignty, security, or regulatory requirements, it also ensures that they have access to hardware options, such as Nvidia’s Blackwell GPUs or Amazon’s Trainium3 accelerators.
AWS AI Factories are on-premises facilities with shared responsibilities
Why would a customer want to increase the pressure on themselves by becoming responsible for the location and electricity? It’s simple: Some companies and governments want access to advanced AI, but they are limited in terms of the data they can send off-site.
Building independent AI infrastructure is slow and expensive, but AWS says it can deploy these systems in a matter of months, helping customers avoid large capital expenditures.
With AWS managing the entire AI environment exclusively for a single customer, the data remains local and the hardware will not be shared with others.
The move to on-premises infrastructure is an interesting setback to the cloud push we’ve seen in recent years, with businesses largely concerned about sensitive data, AI training, and national security.
“By combining NVIDIA’s latest Grace Blackwell and Vera Rubin architectures with AWS’s secure, high-performance infrastructure and AI software stack, AWS AI Factories enables organizations to build powerful AI capabilities in a fraction of the time and focus entirely on innovation rather than integration,” commented Ian Buck, vice president and general manager of Hyperscale and HPC for Nvidia.
But Amazon is not the only one promoting the concept of AI Factories. Microsoft has Azure Local to support sovereignty requirements, including Microsoft-managed hardware installed in a customer’s facility.
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