Amazon is testing out private on-premises 'AI Factories'

Date:
Wed, 03 Dec 2025 11:28:36 +0000

Description:
Amazon and Nvidia hardware can be installed within a customers own facility with AI Factories.

FULL STORY ======================================================================AWS AI Factories put Amazon/Nvidia hardware in customers own facilities Theyre designed to respond to strict data sovereignty/privacy requirements A return to on-prem has gained traction in an AI-driven era

Amazon Web Services has revealed more information about its AI Factories full-stack AI infrastructure that sits inside a customers own data center.

This means customers would provide the facility and the power, with Amazons cloud division providing and managing AI systems, in a way likening AI Factories to a private AWS region.

Besides giving organizations more control against data sovereignty, security, or regulatory requirements, it also ensures they have access to hardware options, such as Nvidias Blackwell GPUs or Amazons Trainium3 accelerators.
AWS AI Factories are on-prem facilities with shares responsibilities

Why would a customer want to increase pressure on itself by becoming responsible for location and power? Its simple - certain enterprises and governments want access to advanced AI, but theyre limited in terms of the data they can send off-prem.

Building independent AI infrastructure is slow and costly, but AWS says it
can deploy these systems in months, helping customers to avoid large capex burdens.

With AWS managing the entire AI environment exclusively for the one customer, data stays local and hardware will not be shared with others.

The shift to on-prem infrastructure is an interesting reverse from the cloud push weve seen in recent years, with enterprises largely worried about sensitive data, AI training, and national security.

By combining NVIDIAs latest Grace Blackwell and Vera Rubin architectures with AWSs secure, high-performance infrastructure and AI software stack, AWS AI Factories allow organizations to stand up powerful AI capabilities in a fraction of the time and focus entirely on innovation instead of integration, Hyperscale and HPC VP and GM for Nvidia, Ian Buck, commented.

But Amazon isnt alone in pushing the concept of AI Factories. Microsoft has Azure Local to support sovereignty requirements, comprising Microsoft-managed hardware installed within a customers facility.

Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the
Follow button!

And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.



======================================================================
Link to news story: https://www.techradar.com/pro/amazon-is-testing-out-private-on-premises-ai-fac tories


--- Mystic BBS v1.12 A49 (Linux/64)
* Origin: tqwNet Technology News (1337:1/100)