Joint customers will have the capability to pretrain, fine-tune, augment, and serve large language models on their private data, supported by AWS's scale and security.

Customers using Mosaic AI on AWS will benefit from scalable model training at reduced expenses while maintaining control over their data and intellectual property.

The collaboration will also enhance the integration of Databricks' big-data services on AWS, simplifying onboarding and offering serverless computing options.

Databricks plans to continue enhancing its platform, investing in new features and partnerships to make AI more accessible to a broader audience.

Amazon has formed a five-year partnership with Databricks to advance AI development, utilizing AWS's Trainium AI processors.

This collaboration aims to enhance the creation of custom models through Databricks Mosaic AI on AWS, with Trainium chips serving as the primary AI hardware.

By leveraging AWS's AI chips, the partnership is expected to significantly reduce costs for customers compared to using Nvidia's graphics processing units.

Ali Ghodsi, CEO of Databricks, emphasized that this collaboration will enable faster market entry for generative AI applications.

AWS CEO Matt Garman noted that the partnership will help customers derive value from their data through cost-effective generative AI applications integrated with analytics workflows.

The enterprise AI market is experiencing significant growth, projected to reach $1.74 billion in 2022 and grow at an annual rate of 36.4% through 2030.

The partnership addresses challenges enterprises face in managing the development cycle of data-driven applications, including infrastructure provisioning and security.

This agreement strengthens Amazon's competitive position in the rapidly evolving AI chip industry, particularly against rivals like Nvidia.