The Stealthy Lab Cooking Up Amazon’s Secret Sauce

Amazon’s decade-old acquisition of Annapurna Labs has emerged as a pivotal element in its AI strategy, with the once-secretive Israeli chip design startup now powering AWS infrastructure. The $350 million deal, struck in 2015 after initial talks between Annapurna co-founder Nafea Bshara and Amazon executive James Hamilton, has equipped the tech giant with custom silicon capabilities critical to its cloud computing dominance.

Annapurna’s chips, particularly the Trainium processor for AI model training and Graviton for general-purpose computing, now form the foundation of Amazon’s AI infrastructure. The company is deploying hundreds of thousands of Trainium chips in its Project Rainier supercomputer being delivered to AI startup Anthropic this year. Amazon CEO Andy Jassy, who led AWS when the acquisition occurred, described it as “one of the most important moments” in AWS history.