What is Amazon's new "AI Factories" product?

Amazon's AI Factories allow large corporations and governments to run AI systems within their own data centers, prioritizing data sovereignty.

Why are companies interested in Amazon's AI Factories?

Companies are interested in AI Factories to maintain absolute control over their data, preventing it from being accessed by competitors or adversaries.

Is Amazon's AI Factories a collaboration with Nvidia?

Yes, Amazon's AI Factories are a collaborative effort with Nvidia, combining technologies from both companies.

Home / Technology / AWS & Nvidia Forge On-Prem AI Powerhouses

AWS & Nvidia Forge On-Prem AI Powerhouses

3 Dec, 2025

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Summary

Amazon's AI Factories allow on-premises AI system deployment.
Data sovereignty is a key driver for this new AWS offering.
The service is a collaboration between AWS and Nvidia.

AWS & Nvidia Forge On-Prem AI Powerhouses

Amazon has launched "AI Factories," a new offering designed to let large organizations and governments host Amazon's artificial intelligence systems in their own data centers. This initiative directly caters to entities prioritizing data sovereignty, ensuring their data does not leave their controlled environments.

The product is a collaborative effort with Nvidia, leveraging a combination of AWS and Nvidia technologies. Customers can opt for Nvidia's latest Blackwell GPUs or Amazon's Trainium3 chip, integrated with AWS's networking, storage, and security services. This allows for seamless connection to Amazon Bedrock and AWS SageMaker.

This development mirrors similar moves by other cloud providers, such as Microsoft, which is also deploying AI Factories with Nvidia hardware for its AI workloads. The trend signifies a resurgence of focus on corporate private data centers and hybrid cloud strategies.

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