Amazon announced major AI advancements at its AWS re:Invent conference, headlined by the new in-house AI chip, Trainium3. The company claims this new chip is 4.4 times faster and significantly more energy-efficient than its predecessor, offering a powerful and more affordable alternative to Nvidia's GPUs for training AI models. Amazon also revealed 'frontier agents,' a new class of autonomous AI capable of handling complex, multi-day projects without constant human supervision. The strategic move towards creating its own high-performance chips aims to reduce AWS's reliance on third-party suppliers like Nvidia, giving Amazon greater control over its supply chain and pricing. By potentially lowering AI training and deployment costs for customers by up to 50%, Amazon hopes to accelerate the adoption of AI services on its cloud platform, which could in turn boost revenue and profits for its most profitable division. Investors reacted positively to the announcements, with Amazon's stock seeing a surge. The market's response reflects growing confidence in the company's long-term AI strategy and its potential to solidify its leadership in the cloud computing sector as the demand for artificial intelligence capabilities continues to grow.