Amazon's AI chip business hits $20 billion run rate as Jassy hints at external sales
14 Sources
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Amazon Is Considering Selling Its AI Chips to Other Companies
Amazon.com Inc. is considering selling its chips to other companies, Chief Executive Officer Andy Jassy said Thursday, adding that the cloud-computing giant's in-house silicon unit is on pace to bring in more than $20 billion over the course of a year. The disclosure offers a rare glimpse into the
[2]
Amazon cloud unit's AI revenue run rate exceeds $15 billion in first quarter, CEO says
April 9 (Reuters) - Amazon.com (AMZN.O), opens new tab said on Thursday its cloud business's AI revenue run rate was more than $15 billion in the first quarter of 2026, the company's first disclosure of direct financial returns from its artificial intelligence efforts. The numbers are also
[3]
Amazon CEO Jassy defends $200 billion AI spend: "We're not going to be conservative"
"We're not going to be conservative in how we play this -- we're investing to be the meaningful leader, and our future business, operating income, and [free cash flow] will be much larger because of it," Jassy wrote. The company disclosed in February that it expects to spend roughly $200 billion
[4]
Amazon's chip business could be worth $50 billion, Jassy says, and he hints it may sell them externally
In short: Andy Jassy's annual letter to shareholders, published on 9 April 2026, reveals that Amazon's custom chip business, covering Graviton, Trainium, and Nitro, generates more than $20 billion in annualised revenue growing at triple-digit rates year-on-year. If sold on the open market like
[5]
'Not on a hunch': Andy Jassy defends Amazon's $200B spending spree
Andy Jassy's new letter to Amazon shareholders is a data-heavy defense of the tech giant's biggest bets -- from AI and custom chips to satellite internet and 20-minute delivery. In the process, the Amazon CEO discloses that AI revenue for AWS has hit a $15 billion annual run rate, that Amazon's
[6]
Amazon may sell Trainium AI chips to third parties in shot at Nvidia
Amazon $AMZN CEO Andy Jassy is floating the prospect of selling the company's Trainium AI chips directly to external buyers, putting a dollar figure on the company's chip operation for the first time and placing its annualized revenue above $20 billion. "There's so much demand for our chips that
[7]
Andy Jassy Bets $200B on A.I. to Cement Amazon's Tech Dominance
Andy Jassy commits $200 billion to A.I., betting Amazon's growth will come from chips, data and AWS innovation. Amazon is going all in on A.I. and betting more money on it than anyone else in Silicon Valley. Under CEO Andy Jassy, the tech giant plans to pour a staggering $200 billion into A.I.
[8]
Amazon CEO reveals AI revenue, dismisses spending doubts in annual letter
Amazon's cloud division has reached a remarkable milestone, raking in more than $15 billion each year from its AI offerings. This impressive figure highlights the success of Amazon's heavy investments in technology. Additionally, the company's custom chip sector is thriving, boasting annual
[9]
Amazon CEO Says Chip Business Is 'On Fire,' Graviton & Trainium Now Competing At Intel, AMD, And NVIDIA Scale
Amazon's CEO, Andy Jassy, issued a letter to shareholders about the company's custom chip business, and his words showed strong optimism about the in-house infrastructure stack. Amazon's Andy Jassy Hints Towards Selling Their Custom Silicon To External Customers, Given Their Internal
[10]
Amazon Plays Both Sides: Chip Competition Leads To Team-Ups - Amazon.com (NASDAQ:AMZN)
Amazon Plays Both Sides: Competing -- And Partnering -- With Nvidia, AMD And Intel For Amazon.com Inc. (NASDAQ:AMZN), rivalry and partnership go hand in hand. According to Amazon Web Services CEO Matt Garman, the company competes with big name chip suppliers while simultaneously collaborating
[11]
Amazon CEO Andy Jassy Rejects AI Bubble Fears | PYMNTS.com
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Jassy said that while investment spikes invite scrutiny, AI is a game-changer
[12]
Amazon generating $15B in AI revenue, CEO Andy Jassy says
Amazon's AI services at its cloud-computing unit are generating annualized revenue of more than $15 billion, CEO Andy Jassy said, the first time the company has reported numbers on a business it has backed with billions of dollars in investment. The figure, based on first-quarter performance,
[13]
AWS AI Revenue Tops $15 Billion as Chip Business Doubles
Amazon CEO Reveals $15 Billion AWS AI Revenue Run Rate as Custom Chip Growth Accelerates Amazon said its cloud unit now generates more than $15 billion in annualized revenue from artificial intelligence services, as the company gave fresh figures on a business tied to its Chief Executive Andy
[14]
Amazon raises $15bn in annual AI revenue
Amazon has announced that its artificial intelligence services within AWS now generate more than $15bn in annualized revenue, representing approximately 10% of its cloud division's revenues, estimated at $142bn. This first quantitative disclosure regarding this strategic segment was welcomed by the
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Amazon revealed its custom chip business generates over $20 billion annually, growing at triple-digit rates. CEO Andy Jassy disclosed in his shareholder letter that AWS AI revenue reached a $15 billion run rate in Q1 2026, while defending the company's $200 billion capital expenditure plan. The tech giant may soon sell its Trainium and Graviton chips directly to third parties.
Amazon Reveals Massive Scale of Custom Chip Business
Amazon AI has reached a pivotal moment as the company disclosed that its custom chip business now generates over $20 billion in annual revenue, doubling from the $10 billion milestone reported earlier this year
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. CEO Andy Jassy revealed in his annual shareholder letter that the business is growing at triple-digit percentage rates year-on-year, encompassing the company's Graviton, Trainium, and Nitro chip lines4
. The disclosure offers a rare glimpse into the scale of Amazon's in-house chip operation, which produces general-purpose computing and AI accelerators designed to make the company's servers run more efficiently1
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Source: GeekWire
Jassy went further, stating that if Amazon's custom chip business were an independent company selling semiconductors on the open market like Nvidia, it would generate roughly $50 billion in annual revenue
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. Currently, the company only monetizes these AI chips through its EC2 cloud computing service within AWS, but that model may be about to change5
.Selling AI Chips Externally Becomes a Realistic Possibility
The demand for Amazon's custom chips has become so intense that Jassy signaled the company may begin selling AI chips to third parties. "There's so much demand for our chips that it's quite possible we'll sell racks of them to third parties in the future," Jassy wrote in his shareholder letter
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. This potential shift would follow Amazon's established playbook of building capabilities internally before offering them as external services, the same pattern that created AWS and Fulfillment by Amazon5
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Source: Quartz
The appetite for Amazon's silicon is evident in customer behavior. Two large AWS customers asked whether they could purchase all available Graviton capacity for 2026, a request Amazon declined
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. Graviton, Amazon's custom CPU, now delivers more than 40% better price-performance than comparable x86 processors and is used by 98% of the top 1,000 EC2 customers4
. Meanwhile, Trainium2 has largely sold out, Trainium3 is nearly fully subscribed, and Trainium4—still approximately 18 months from broad availability—has already been significantly reserved4
.AWS AI Revenue Run Rate Exceeds $15 Billion
In another significant disclosure, Jassy revealed that AWS's AI revenue run rate exceeded $15 billion in the first quarter of 2026, marking the company's first public statement of direct financial returns from its artificial intelligence efforts
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Source: Market Screener
These numbers are "ascending rapidly," Jassy noted, while adding that AWS as a whole would be growing even faster without the capacity constraints currently facing the tech industry
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. To contextualize this figure, AWS overall had a $142 billion revenue run rate as of Q4 20255
.Jassy positioned Amazon AI as being "smack in the middle of this land rush," comparing the current wave to the early days of cloud computing. Three years after AWS launched commercially, the cloud division had a $58 million revenue run rate. Three years after generative AI took off, the company's AI business is nearly 260 times greater
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. "We have never seen a technology more quickly adopted than AI," he wrote5
.Related Stories
Andy Jassy Defends $200 Billion Capital Expenditure Plan
The revelations come as Andy Jassy mounted a vigorous defense of Amazon's $200 billion capital expenditure plan for 2026, with the lion's share directed toward AI infrastructure investment including data centers, chips, and networking equipment
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. This represents nearly a 60% increase from last year and exceeds the spending of any tech peer3
. Amazon shares have struggled this year as investors question the aggressive spending plans and grow impatient about when the investments will pay off, with the stock sliding more than 4% year to date3
."We're not investing approximately $200 billion in capex in 2026 on a hunch," Jassy wrote. "We're not going to be conservative in how we play this—we're investing to be the meaningful leader, and our future business, operating income, and free cash flow will be much larger because of it"
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. He readily acknowledged that Amazon's free cash flow dropped from $38 billion to $11 billion last year, driven by a $50.7 billion increase in capital spending5
.The defense rests on committed customer demand rather than speculation. A substantial portion of the expected 2026 CapEx already has customer backing, including OpenAI's commitment of more than $100 billion to AWS, which expanded an existing $38 billion seven-year partnership
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. This commitment includes OpenAI consuming approximately two gigawatts of Trainium capacity through AWS infrastructure4
.Trainium Chips Position Amazon as Nvidia Alternative
Trainium chips represent Amazon's most direct response to Nvidia's market dominance in AI accelerators. Trainium2 offers roughly 30% better price-performance than comparable GPU alternatives, while Trainium3 provides a further 30 to 40% improvement over Trainium2
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. Major customers like Uber have already moved workloads onto Trainium3, which began shipping in early 20264
.At scale, Jassy projects that Trainium will "save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others' chips for inference"
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. Notably, Trainium4 will feature interoperability with Nvidia's NVLink Fusion interconnect technology, allowing customers to combine Trainium accelerators with Nvidia GPUs within the same system4
. Jassy carefully framed the competitive dynamic: "We have a strong partnership with NVIDIA, will always have customers who choose to run NVIDIA," while asserting that "virtually all AI thus far has been done on NVIDIA chips, but a new shift has started"4
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