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April 7, 2026 • Julie Bort

Uber Embraces Amazon's AI Chips, Challenging Cloud Rivals

Uber Embraces Amazon's AI Chips, Challenging Cloud Rivals Uber Embraces Amazon's AI Chips, Challenging Cloud Rivals Uber Embraces Amazon's AI Chips, Challenging Cloud Rivals

Uber is the latest to be won over by Amazon’s AI chips

Amazon announced that Uber is expanding its contract for AWS cloud services to run more of its ride-sharing features on Amazon’s proprietary chips. This expansion includes increased use of AWS’s Graviton processors and a new trial of Trainium3, AWS’s AI chip designed to compete with Nvidia.

This development is significant as it represents a strategic move by Amazon to challenge its cloud competitors, Google and Oracle, by leveraging its in-house chip technology. Historically, Uber had established substantial cloud computing deals with both Oracle and Google in 2023, aiming to migrate its IT infrastructure away from its own data centers.

Background: Uber's Cloud Migration and Ampere's Role

Uber's transition from on-premise data centers to the cloud, utilizing Oracle Cloud Infrastructure (OCI) and Google Cloud Platform, was a significant undertaking. A key aspect of this migration involved the adoption of ARM-powered compute instances, particularly those from Ampere, which were highlighted in a blog post by Uber in December 2025. The article delves into the intricate relationships within the tech industry, noting that Ampere was founded by Renee James, a former Intel executive, with significant early investment from Oracle. This connection led to James stepping down from Oracle's board due to potential conflicts of interest.

Ampere was later acquired by SoftBank, and Oracle divested its stake for a substantial profit. This strategic shift by Oracle, as stated by Larry Ellison, was driven by a belief that in-house chip design was no longer a competitive advantage, leading them to focus on purchasing chips, notably from Nvidia, and to secure massive deals with the latter.

Strategic Implications and Partnerships

Oracle, SoftBank, and Nvidia are also noted to be part of a network of deals supporting OpenAI's extensive data center build-out. The current announcement signifies AWS's success in securing a larger contract from Uber, a key client of Oracle, by offering its custom-designed AI chips.

Uber joins a growing list of major technology companies, including Anthropic, OpenAI, and Apple, that are increasing their reliance on AWS due to its AI chip offerings. Amazon CEO Andy Jassy previously stated that the Trainium chip was already a multi-billion dollar business by December 2025.

Key Takeaways:

  • Uber's Expanded AWS Contract: Uber is increasing its use of AWS services, specifically leveraging Amazon's Graviton and testing Trainium3 AI chips.
  • Amazon's Chip Strategy: This move highlights Amazon's commitment to its in-house chip development (Graviton and Trainium) as a competitive differentiator in the cloud market.
  • Competitive Landscape: The deal is a direct challenge to Google and Oracle, who were previously major cloud partners for Uber.
  • Industry Interconnections: The article details the complex relationships between companies like Ampere, Oracle, SoftBank, and Nvidia, illustrating the interconnected nature of the semiconductor and cloud computing industries.
  • Growing Adoption of AWS AI Chips: Uber's decision follows similar commitments from other major tech players like Anthropic, OpenAI, and Apple, indicating strong market traction for AWS's AI hardware.

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