On Tuesday, Amazon announced an expansion of its partnership with Uber, increasing the ride-hailing service’s reliance on AWS cloud solutions, particularly through the use of Amazon’s Graviton chips and a trial of Trainium, a new AI chip positioned to compete with Nvidia. This agreement not only strengthens Uber’s commitment to AWS but also showcases Amazon’s strategic positioning against cloud providers like Google and Oracle.
Historically, Uber operated its own data centres but has shifted significantly towards cloud services. In 2023, it inked multi-year deals with Google and Oracle to migrate much of its IT infrastructure to their platforms. Even as late as December, Uber reaffirmed its transition plan, emphasising the integration of ARM-powered compute instances into its previously x86-focused setup. Notably, Uber’s previous commitment to Oracle included utilizing ARM chips from Ampere, the company founded by former Intel executive Renee James.
James had robust connections with Oracle and leveraged them to establish Ampere, which Oracle had a significant stake in. In December 2024, Ampere was acquired by Softbank, marking a significant shift in its ownership dynamics. Following this, Oracle decided to sell its position in Ampere for a substantial profit, reflecting a strategic pivot away from in-house chip design.
Oracle’s current strategy involves aggressive fundraising to bolster data centres for companies like OpenAI, underscoring a preference for acquiring chips rather than developing them internally. This shift led them to secure substantial contracts with Nvidia, a strategic move that aligns with their data centre expansion plans.
In contrast, Amazon is enjoying a resurgence in cloud contracts, notably with Uber. This partnership adds to a growing list of major companies, such as Anthropic and Apple, that are leveraging AWS for its advanced chip technologies. Amazon’s CEO, Andy Jassy, indicated that Trainium has already become a multi-billion-dollar business, reinforcing the financial viability and robustness of AWS’s cloud offerings.
The relationship between these tech giants underscores the complexities of Silicon Valley dynamics, where partnerships and acquisitions continually reshape the landscape. Uber’s new reliance on AWS highlights a critical competitive edge for Amazon, particularly as it has developed its own chip technology, allowing it to attract prominent clients from direct competitors of Oracle and Google.
As Uber deepens its integration with AWS, the implications for the cloud service market are substantial, and it signals a potential shift in the competitive landscape among major tech companies.
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