Amazon Web Services (NASDAQ:AMZN) is reportedly offering discounted access to servers powered by its Trainium AI chips, aiming to compete with Nvidia (NASDAQ:NVDA) in the cloud computing market, The Information reported.

According to the report, AWS provided a longtime cloud customer with chips matching the computing power of Nvidia's H100 GPUsbut at just 25% of the cost. This move comes as tech giants like Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) continue developing their own in-house AI chips to reduce reliance on Nvidia's dominant processors.

AWS has long provided Nvidia-powered GPU computing, alongside Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD) processors. However, Nvidia remains the industry leader, thanks to its powerful chips and proprietary CUDA programming language. Developers switching to Trainium would need to modify software code and ensure AI models run effectively on Amazon's chips.

Amazon shares were down 2% in Tuesday morning trading, while Nvidia slipped 3% following the report.