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Friday, January 16, 2026

Amazon’s AI Chip Cooling Breakthrough Draws Elon Musk’s Interest

Amazon’s Breakthrough in AI Chip Cooling

Amazon CEO Andy Jassy has revealed a significant hardware innovation designed to manage the extreme heat produced by AI chips like Nvidia GPUs in data centers. The company’s in-house cooling solution has even drawn a notable response from Elon Musk.

Key Takeaways

  • Amazon developed its own In-Row Heat Exchanger (IRHX) for AI chip cooling.
  • The system uses 9% less water and improves power efficiency by 20%.
  • Elon Musk responded “Interesting” to Jassy’s announcement.
  • Amazon projects over 20% of its ML capacity will use liquid cooling by 2026.

The Cooling Challenge and Amazon’s Solution

In a detailed post on X, Jassy explained the universal challenge cloud providers face: placing chips close together for speed while managing intense cooling demands. Rather than waiting for specialized facilities, Amazon engineered its own solution.

The company announced its In-Row Heat Exchanger (IRHX) in July, featuring a direct-to-chip “cold plate” approach. This innovation allows Amazon to deploy both liquid and air-cooled racks within existing data center infrastructure.

Efficiency Gains and Industry Response

Jassy highlighted the IRHX’s substantial benefits: it consumes 9% less water than fully air-cooled sites and delivers a 20% power efficiency improvement over standard solutions.

Following Jassy’s announcement, Tesla CEO Elon Musk responded with a simple but telling “Interesting.” This acknowledgment underscores the significance of Amazon’s advancement in scalable AI hardware, especially as Musk’s xAI pursues its own supercomputer projects.

Amazon expects its liquid-cooled capacity to expand significantly, projecting it will constitute over 20% of its Machine Learning capacity by 2026.

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