Amazon plans external sales of Trainium artificial intelligence chips
Amazon has outlined plans to begin selling its Trainium artificial intelligence chips to external customers, marking a potential shift that would place the company in more direct competition with established semiconductor leaders in the data center market. Chief executive Andy Jassy indicated that there is a strong possibility the company could start offering full hardware racks within the next two years.
The chips are currently only available through Amazon Web Services, where clients rent computing capacity rather than purchase physical infrastructure. A move toward selling standalone racks would represent a structural change in Amazon’s chip strategy, turning its in house semiconductor program into a commercial hardware business with external customers.
Jassy told investors that demand for Trainium has been extremely strong across multiple generations of the product line. He said Trainium2 supply is effectively exhausted, Trainium3 is nearly fully allocated, and significant portions of Trainium4 have already been reserved. He also stated that cumulative revenue commitments tied to the Trainium ecosystem exceed 225 billion dollars, driven by long term contracts and high performance computing demand from large technology clients.
The company’s broader custom chip portfolio, which also includes Graviton processors and Nitro systems, is now generating more than 20 billion dollars in annualized revenue. Jassy described it as one of the largest data center chip businesses globally and suggested that if operated independently and sold beyond Amazon’s cloud division, it could reach 50 billion dollars in annual revenue. He also pointed to rapid growth, with revenue expanding at triple digit percentage rates year over year.
The announcement comes as Amazon increases its overall capital investment in artificial intelligence infrastructure while maintaining its reliance on external chip suppliers. Jassy noted that Nvidia will remain a key partner and that Amazon will continue purchasing significant volumes of its GPUs. At the same time, he argued that Trainium offers roughly 30 percent better price performance in certain workloads, creating internal cost savings measured in tens of billions of dollars annually while positioning the company for broader competition in the AI hardware market.
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