Amazon Web Services (AWS) is transforming the cloud computing landscape by deploying AI infrastructure directly into customer data centers. The new "AI Factory" product enables governments and large enterprises to deploy AI projects at scale while maintaining full control over data processing and storage locations to meet compliance requirements.
Launched at the Re:Invent 2025 conference in Las Vegas, the AI Factory integrates Nvidia GPUs, Trainium chips, and AWS networking/storage infrastructure within customer-owned data centers. Operating as private AWS regions, these dedicated deployments build upon the Project Rainier framework developed for Anthropic, with existing implementations in Saudi Arabia through Humain. Last month, AWS and Humain expanded their collaboration to deploy approximately 150,000 AI chips including Nvidia GB300 and Trainium processors.
The solution reflects cloud providers' strategic pivot in the AI era, offering flexible deployment options and cost-efficient dedicated infrastructure to high-value clients with stringent data sovereignty requirements.
Dual-Chip Strategy Addresses Diverse Needs
AWS AI Factory presents two technical pathways: The Nvidia-integrated option delivers full-stack Nvidia AI software and hardware, supported by AWS Nitro systems and UltraClusters for Nvidia's Grace Blackwell and Vera Rubin platforms. Alternatively, customers can opt for AWS's proprietary Trainium chips, with the newly announced Trainium3 UltraServers and future Trainium4 chips featuring Nvidia NVLink Fusion compatibility for enhanced interoperability.
Nvidia's VP of Hyperscale and HPC, Ian Buck, noted: "Large-scale AI requires a full-stack approach combining advanced GPUs, networking, and optimized software. AWS AI Factory accelerates organizations' AI capabilities by integrating Nvidia architectures with AWS's secure infrastructure."
Saudi Project Validates Commercial Viability
The Humain collaboration in Saudi Arabia demonstrates the model's scalability, with CEO Tareq Amin describing it as "the beginning of our multi-gigawatt journey with AWS." The partnership highlights AWS's proven infrastructure expertise and regional commitment while establishing a blueprint for global AI deployment.
Government and High-Compliance Focus
Primarily targeting government agencies and regulated enterprises, the AI Factory enables clients to operate AWS-managed services including foundation models within their own facilities. This hybrid approach combines cloud flexibility with on-premises compliance, exemplified by AWS's reported $50 billion initiative to expand AI capabilities for the U.S. government. The "private AWS region" concept delivers managed services while meeting data localization mandates.
