Amazon Web Services (AWS) has announced the plans to develop an “Ultracluster,” an AI supercomputer powered by its custom-designed Trainium chips. The company also announced the launch of its new server called Ultraserver, made up of 64 of its own interconnected chips.

Amazon is building an artificial intelligence supercomputer made of its in-house Trainium chips and also a new server that it said will be used by AI startup Anthropic.

The company’s megacluster of chips for artificial-intelligence startup Anthropic will be among the world’s largest, it said, and its new giant server will lower the cost of AI as it seeks to build an alternative to Nvidia.

The Rainier cluster will use Amazon’s custom-built AI chips, called Trainium 2, that compete with Nvidia’s graphics processors.

Amazon has partnered with OpenAI rival Anthropic to build one of the world's most powerful artificial intelligence (AI) supercomputers. The project, dubbed Rainer, was announced by Amazon Web Services (AWS) CEO Matt Garman at the company's Re:Invent conference in Las Vegas.

AI startup Anthropic will collaborate with Amazon Web Services and put the supercomputer to work with its AI technology.

Nvidia was rising early on Wednesday. The chip maker looks to be shrugging off a challenge from Amazon.com when it comes to artificial-intelligence hardware. Nvidia shares were up 0.9% at $141.53 in premarket trading.

Amazon.com Inc. will provide artificial intelligence partner Anthropic with a massive cluster of homegrown chips it says will quintuple the startup’s current processing power.

Invent conference, Amazon also announced new tools to help customers build generative AI programs, including one that checks whether a chatbot’s outputs are accurate or not.