Investing.com -- Amazon is in talks to sell its Trainium AI chips directly to other companies for use in their data centers, according to a report from Bloomberg News, citing an interview with Amazon’s AI Chief, Peter DeSantis. The move represents an effort to compete with Nvidia and take advantage of growing global demand for AI infrastructure.

The strategy targets international customers looking for localized data solutions. Amazon executives said the decision to sell hardware outside of Amazon Web Services does not raise concerns about lost cloud revenue.

"We view AI infrastructure as rapidly evolving. And we’re constantly looking at ways to get to more customers," said DeSantis.

DeSantis addressed questions about whether external chip sales might reduce AWS revenue. "There’s so much underconsumption in AI. I’m not worried about it," he said.

Amazon CEO Andy Jassy wrote in his April shareholder letter that it is "quite possible" Amazon would sell racks of its chips to third parties.

The approach follows a similar path taken by Google, which recently announced plans to sell its custom chips to select external data centers.