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AWS AI Factories: AI-in-a-Box for Enterprise Datacenters

AWS AI Factories enable on-premises AI with Nvidia GPUs, addressing data sovereignty by keeping sensitive data inside corporate and government data centers, AWS said.

  • Amazon/AWS unveiled AI Factories at re:Invent Tuesday, a collaboration with Nvidia to install and manage AWS AI infrastructure inside enterprises' and governments' own data centers.
  • Customer demand for on-prem control prompted the launch as AWS designed AI Factories to address data sovereignty and prevent sharing sensitive data with external model makers or hardware.
  • The system pairs Trainium3 or Nvidia GPUs with a petabit‑scale network and offers Amazon FSx for Lustre plus Amazon S3 Express One Zone storage while customers tap Amazon Bedrock and AWS SageMaker for model building and management.
  • Customers will hand over space and power while AWS installs and manages the equipment, and Amazon did not disclose pricing; AWS cited the Kingdom of Saudi Arabia AI Zone with 150,000 AI chips.
  • Industry context shows heavy competition from other Nvidia-backed on-prem offerings, with Dell, Lenovo, and HPE reporting strong sales, while analyst firms Forrester and Gartner warn AI spending is tightening and chip shortages persist.
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reseller.co.nz broke the news in on Tuesday, December 2, 2025.
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