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Data Center News > Blog > Global Market > With AI Factories, AWS aims to help enterprises scale AI while respecting data sovereignty
Global Market

With AI Factories, AWS aims to help enterprises scale AI while respecting data sovereignty

Last updated: December 7, 2025 2:40 pm
Published December 7, 2025
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“The AWS AI Manufacturing unit seeks to resolve the stress between cloud-native innovation velocity and sovereign management. Traditionally, these aims lived in opposition. CIOs confronted an unsustainable dilemma: select between on-premises safety or public cloud price and velocity advantages,” he stated. “That is arguably AWS’s most vital transfer within the sovereign AI panorama.”

On premises GPUs are already a factor

AI Factories isn’t the primary try and put cloud-managed AI accelerators in clients’ knowledge facilities. Oracle launched Nvidia processors to its Cloud@Buyer managed on-premises providing in March, whereas Microsoft introduced final month that it’s going to add Nvidia processors to its Azure Native service. Google Distributed Cloud additionally features a GPU providing, and even AWS provides lower-powered Nvidia processors in its AWS Outposts.

AWS’ AI Factories can also be more likely to sq. off towards from a variety of comparable merchandise, corresponding to Nvidia’s AI Manufacturing unit, Dell’s AI Manufacturing unit stack, and HPE’s Non-public Cloud for AI — every tightly coupled with Nvidia GPUs, networking, or software program, and all vying to develop into the default on-premises AI platform.

However, stated Sopko, AWS can have a bonus over rivals as a result of its hardware-software integration and operational maturity: “The key sauce is the software program, not the infrastructure,” he stated.

Omdia principal analyst Alexander Harrowell expects AWS’s AI Factories to mix the on-premises management of Outposts with the pliability and skill to run a greater diversity of companies provided by AWS Local Zones, which places small knowledge facilities near giant inhabitants facilities to scale back service latency.

See also  How to avoid quantum decryption in the cloud

Sopko cautioned that enterprises are more likely to face excessive dedication prices, drawing a parallel with Oracle’s OCI Devoted Area, one in every of its Cloud@Buyer choices.

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TAGGED: aims, AWS, data, enterprises, Factories, respecting, scale, Sovereignty
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Previous Article EY and NVIDIA to help companies test and deploy physical AI EY and NVIDIA to help companies test and deploy physical AI
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