(Amazon AWS)

Amazon rolls out updated Trainium chip, new AI models at re:Invent conference

A flurry of product announcements from the developer conference in Las Vegas present a road map for Amazon’s AI computing dominance.

Jon Keegan

12/2/25 3:04PM

Today in Las Vegas, at its annual re:Invent developer conference, Amazon AWS made a bunch of product announcements that reveal its plan to continue capitalizing on the AI boom.

AWS currently enjoys a substantial lead in the cloud computing market, serving up AI infrastructure in the cloud to customers large and small using the models of their choice.

Trainium3

Probably the most consequential announcement was about the company’s new Trainium3 custom AI chip. Three years out from ChatGPT’s disruptive debut, AI companies are diversifying their computing resources away from GPU juggernaut Nvidia and starting to sample the price and performance benefits of alternative custom chips, such as Trainium.

Today, AWS announced the Trainium3 UltraServer, powered by the new Trainium3 chips. The company said the Trainium3 chips are 4x as fast and can train models for half the cost of the previous generation. AWS CEO Matt Garman acknowledged the misleading name of the chip, which excels not only at training AI models but also running AI models, known as inference.

“People often give us a little bit of a hard time about product naming in AWS. No, no, it’s true. Well, it turns out Trainium is no exception. We named it Trainium because it’s designed to be an awesome chip for Al training, and it is, but as it turns out, Trainium2 is actually the best system in the world currently for inference,” Garman said.

The company said work on Trainium4 is well underway, and the chips would be compatible with Nvidia systems.

Nova 2 models

Amazon announced updates to its own frontier AI model family called Nova:

Nova Lite (fast and cheap for everyday tasks),
Nova Pro (for complex reasoning workloads),
Nova Sonic (a new speech-to-speech model), and
Nova Omni (an “all-in-one model for multimodal reasoning and image generation”).

The new models may help the company offer cheaper, more efficient AI computing for its customers versus running competing frontier models on popular Nvidia GPUs.

Nova Forge

Complementing the new Nova 2 models is a product called “Nova Forge,” which makes it easier to train customized models using the Nova models as a base. Customers can bring custom data into the training process to easily create specialized expert models using the tool.

AI Factories

Amazon is also rolling out a way for customers to run AWS services inside their own data centers, keeping their data under their control. Amazon AI Factories works with both Amazon Trainium chips as well as Nvidia GPUs. Amazon said an AI factory is like deploying your own private AWS region.

Agents, agents, agents

AI agents were mentioned quite a bit during the keynote, and the company had lots of new offerings to help customers deploy autonomous AI helpers.

Nova Act: A new AWS service that lets customers spin up “fleets of reliable AI agents for automating production UI workflows.”

DevOps Agent: A new “frontier agent” that autonomously helps solve software failures on production systems when human engineers aren’t online. Amazon describes the new agent as “our always-on, autonomous on-call engineer.”

Rani Molla

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Palo Alto Networks surges after it beats revenue and earnings estimates

Cybersecurity firm Palo Alto Networks jumped more than 10% in postmarket trading after reporting fiscal third-quarter results that beat analyst revenue and earnings expectations.

The company posted adjusted earnings per share of $0.85, versus the FactSet analyst consensus estimate of $0.79 on $3 billion in revenue. (Wall Street had expected $2.94 billion.)

The company also boosted its guidance for the full fiscal year. The company now expects non-GAAP EPS in the range of $3.77 to $3.79, compared to its previous projection of $3.65 to $3.70 (and analysts’ expectations of $3.68). It also forecast revenue of $11.415 billion to $11.425 billion, representing year-over-year growth of 24%, compared to previous growth expectations of 22% to 23%.

Through Tuesday’s close, the stock had risen more than 60% in the past month.

Jon Keegan21h

Microsoft releases 7 new models, next-gen quantum chip at Build conference

Microsoft is making it clear it can stand on its own as a competitor in the AI arena.

Today at its annual Microsoft Build developer conference, the company made a flurry of announcements that move it further away from the shadow of its complicated relationship with partner OpenAI.

Among the products announced:

New Nvidia-powered Windows PCs: the Surface Laptop Ultra and Surface RTX Spark Dev Box.
Seven new homegrown AI models: MAI Image-2.5, MAI Image-2.5-Flash, MAIN Transcribe-1.5, MAI Thinking-1, MAI Voice-2, MAIN Voice-2-Flash, and MAI Code-1-Flash.
Majorana 2, the company’s next-gen quantum chip.
Microsoft Scout, an integrated always-on agent built on OpenClaw.
Project Solara, an AI gadget operating system.

Investors were unimpressed, however, as shares were down over 4% after the announcements.

PHASE 2: Noon - Microsoft Build 2026

New Nvidia-powered Windows PCs: the Surface Laptop Ultra and Surface RTX Spark Dev Box.
Seven new homegrown AI models: MAI Image-2.5, MAI Image-2.5-Flash, MAIN Transcribe-1.5, MAI Thinking-1, MAI Voice-2, MAIN Voice-2-Flash, and MAI Code-1-Flash.
Majorana 2, the company’s next-gen quantum chip.
Microsoft Scout, an integrated always-on agent built on OpenClaw.
Project Solara, an AI gadget operating system.

Investors were unimpressed, however, as shares were down over 4% after the announcements.

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Amazon’s Prime Day is coming early this year

Amazon is moving its four-day Prime Day event up from July, where it’s been for the last five years, to June 23 through 26.

The retail giant cites scheduling clashes with the FIFA World Cup and the 250th anniversary of the signing of the Declaration of Independence as reasons for the move. Prime Day is one of Amazon’s biggest sales events of the year, helping drive $24.1 billion in US online spending last year, according to Adobe Analytics.

More concretely, the move means Amazon will pull a massive chunk of sales from one of its biggest events into Q2, which ends June 30, rather than Q3.

Beyond the top-line revenue shift, Amazon is also using the event to flex its newer strategic muscles, aggressively cross-promoting its same-day grocery delivery networks and its Amazon Haul discount storefront.

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Tesla’s China-made EV sales grew 39% in May, marking 7 straight months of growth

Sales of Tesla vehicles made at its Shanghai plant — produced for China, Europe, and other international markets — grew 39% in May to 85,982 vehicles, a record for the year.

The data marks the company’s seventh straight month of year-over-year wholesale growth for made-in-China vehicles and the company’s continued stabilization overseas. Across the entire Chinese auto industry, overall wholesale volume of so-called new energy vehicles — EVs and hybrids — produced domestically grew 12% from May 2025.

The China Passenger Car Association will report China-only sales later this month, offering a clearer picture of performance in Tesla’s second-largest market. On Monday, several European markets posted year-over-year sales growth for Tesla.