At a conference in Las Vegas, Amazon Cloud CEO Adam Selipsky announced Trainium 2, a second-generation chip designed specifically for training AI systems.

The latest version of the processor is four times more powerful than its predecessor, while being twice as energy efficient, Selipsky said.

Cloud companies like Amazon are looking to reduce their dependence on Nvidia's AI chips.

Amazon rival Microsoft has already released its own custom AI chip called Maia. The online retailer’s Trainium 2 will heat up the market with big names including Google, which has been offering its TPU processor to cloud customers since 2018.

Amazon also said that in addition to its own chip models, the company's cloud customers can still choose services using Nvidia chips.

At the conference, Selipsky also announced Graviton 4, a fourth-generation custom central processing chip, which is said to be 30% faster than the previous version.

Both AWS and Microsoft are using chip technology from Arm, part of a trend away from chips made by Intel and AMD for cloud computing.

Meanwhile, another major cloud company, Oracle, is using chips from startup Ampere Computing for its cloud services.