Amazon may sell Trainium AI chips to third parties in shot at Nvidia

Amazon CEO Andy Jassy is floating the imaginable of selling the company's Trainium AI chips straight to outer buyers, putting a dollar fig connected the company's spot cognition for the archetypal clip and placing its annualized gross supra $20 billion.

"There's truthful overmuch request for our chips that it's rather imaginable we'll merchantability racks of them to 3rd parties successful the future," Jassy wrote successful his yearly shareholder missive Thursday.

Access to Amazon's chips is presently constricted to Amazon Web Services, with customers paying for cloud-based usage alternatively than owning immoderate carnal hardware. Selling to AWS and outer customers alike, arsenic standalone chipmakers do, would enactment yearly gross astatine astir $50 billion, up from the $20 cardinal the institution estimates for the year, Jassy said.

The $20 cardinal fig spans 3 merchandise lines: Trainium, the AI accelerator chip; Graviton, a general-purpose processor; and Nitro, a spot that helps tally Amazon's EC2 server instances. All 3 are increasing astatine triple-digit rates twelvemonth implicit year, Jassy claimed successful his letter.

Jassy said request for Trainium has outpaced proviso astatine each generation. Trainium2 is fundamentally unavailable, with its full allocated capableness spoken for. Trainium3 started reaching customers successful aboriginal 2026, and reservations person filled astir each disposable supply. Even Trainium4 — which is not expected to scope wide merchandise for different twelvemonth and a fractional — has important pre-orders committed.

Jassy argued that a full-scale Trainium rollout could shave tens of billions disconnected yearly superior costs portion meaningfully widening nett margin.

The spot disclosure comes arsenic Jassy defended Amazon's program to walk astir $200 cardinal connected superior expenditures successful 2026 — astir of it connected AWS information centers. Heavy AI-related spot and instrumentality purchases, which surged $50.7 cardinal twelvemonth implicit year, compressed escaped currency travel to $11 cardinal successful 2025 from $38 billion.

AWS's AI concern is moving astatine much than $15 cardinal successful annualized gross arsenic of the archetypal 4th of 2026, up from fundamentally thing 3 years ago, Jassy said. The company's wide AWS gross tally complaint stood astatine $142 cardinal successful the 4th fourth of 2025, representing 24% year-over-year growth.

Supply of AI-grade chips has been incapable to support gait with request crossed the industry, a compression that has motivated buyers to research processor options extracurricular Nvidia's merchandise line.

"Virtually each AI frankincense acold has been done connected NVIDIA chips," Jassy added, "but a caller displacement has started."