HomeAmazon considers selling its in-house AI chips, eyeing $50 billion annual revenue
Andy Jassy, Amazon's CEO, revealed in his annual shareholder letter on Thursday that the company is considering a shift from its previous model of exclusively using its own chips to selling its self-developed chips directly to third-party customers. The chip division's annualized revenue has already surpassed $20 billion, and if the business opens to external sales, it could surge to $50 billion .
From Renting to Selling: A Shift in Business Model
For years, Amazon's chip strategy has diverged sharply from those of Nvidia or Intel. Instead of selling physical hardware, Amazon previously 'rented' the computing power of chips like Trainium and Inferentia through its AWS cloud service. In his letter, Jassy said that due to extremely strong market demand, Amazon may soon begin selling entire rack-mounted chips directly to third parties.
Surge in Production Driven by Computing Power Demand
Amazon's self-developed chips are currently in short supply:
Trainium 2: The second-generation AI training chip, with a cost-performance ratio about 30% better than similar GPUs, is already sold out.
Trainium 3: Scheduled to ship in early 2026, it offers 30% to 40% better performance, and its current subscription rate is nearly full.
Trainium 4: Although still about 18 months from official launch, a significant portion of its production capacity is already reserved.
Alternatives to Counter Nvidia's Dominance
As global demand for computing power in AI model training explodes, companies are urgently seeking alternatives to Nvidia. Jassy noted that AWS's current production capacity bottleneck is preventing some demand from being met. To address this, the company plans to double its total power capacity by the end of 2027. He emphasized that AI represents a once-in-a-lifetime opportunity, and Amazon will not be conservative in its approach to this technological wave.
This strategic shift means Amazon is transitioning from a single cloud service provider to a more aggressive hardware supplier, directly entering the core AI infrastructure market dominated by Nvidia.
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Andy Jassy, Amazon's CEO, revealed in his annual shareholder letter on Thursday that the company is considering a shift from its previous model of exclusively using its own chips to selling its self-developed chips directly to third-party customers. The chip division's annualized revenue has already surpassed $20 billion, and if the business opens to external sales, it could surge to
From Renting to Selling: A Shift in Business Model
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Surge in Production Driven by Computing Power Demand
Amazon's self-developed chips are currently in short supply:
Trainium 2: The second-generation AI training chip, with a cost-performance ratio about 30% better than similar GPUs, is already sold out.
Trainium 3: Scheduled to ship in early 2026, it offers 30% to 40% better performance, and its current subscription rate is nearly full.
Trainium 4: Although still about 18 months from official launch, a significant portion of its production capacity is already reserved.
Alternatives to Counter Nvidia's Dominance
As global demand for computing power in AI model training explodes, companies are urgently seeking alternatives to Nvidia. Jassy noted that AWS's current production capacity bottleneck is preventing some demand from being met. To address this, the company plans to double its total power capacity by the end of 2027. He emphasized that AI represents a once-in-a-lifetime opportunity, and Amazon will not be conservative in its approach to this technological wave.
This strategic shift means
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