What Databricks-AWS Partnership Means for Enterprise [Video]

E-commerce behemoth Amazon and startup Databricks struck a five-year deal to focus on using Amazon’s Trainium AI chips that could cut costs for businesses seeking to build their GenAI apps. 

Databricks will use AWS Trainium chips to power a service that helps companies customise an AI model or build their own using Mosaic AI. It acquired AI startup MosaicML last year in a $1.3 billion deal and is expanding its services to democratise AI and position its Lakehouse as the top platform for GenAI and LLMs. 

The company raised $37 million and offers technology up to 15 times cheaper than competitors, serving clients like AI2, Replit, and Hippocratic AI. It claims that its  MPT-30B LLM, a 30-billion parameter model, is superior in quality and more cost-effective for local deployment than GPT-3. 

Meanwhile, Amazon says customers pay less to use its homegrown chips compared with the competition, such as NVIDIA’s GPUs, which dominate the AI chip market. 

The partnership also includes support …