To that end, Nvidia bears frequently highlight custom AI chips from big technology companies like Amazon ( AMZN 2.48%) and Alphabet ( GOOGL -1.51%) ( GOOG -1.54%) as cause for alarm. While both companies have designed custom silicon for their data centers, recent commentary should put Nvidia investors at ease.

Amazon is reportedly working on its own AI processor to lessen its reliance on NVIDIA for AI chips. The initiative will also add pressure on Nvidia, which dominates the AI chip business. The e-commerce giant is reportedly getting ready to debut its AI chips and this comes as Amazon is attempting to claim a fair

Amazon reportedly will manufacture its own artificial intelligence chips. That will put it in competition with AI darling Nvidia.

Amazon is developing Trainium 2, its next-generation AI chip, designed to reduce reliance on Nvidia and cut operational costs. Led by Annapurna Labs, the chip is expected to be unveiled next month and is already being tested by companies like Anthropic.