Amazon’s Andy Jassy says the company may sell Trainium chips to outside customers, putting the business at $50B in annual revenue

Amazon CEO Andy Jassy said in his annual shareholder letter that the company may begin selling its Trainium AI chips directly to outside buyers, which would push the chip business from its current $20B annual run rate to an estimated $50B if sold on the open market the way standalone chipmakers do. The three chip lines, Trainium, Graviton, and Nitro, are all growing at triple-digit rates year over year, and demand for Trainium has outpaced supply at every generation, with Trainium2 fully allocated, Trainium3 reservations nearly full, and Trainium4 already seeing substantial pre-orders despite being more than a year from wide release. Jassy said a full-scale Trainium rollout could shave tens of billions off Amazon's annual capital costs while widening profit margins, adding that “virtually all AI thus far has been done on NVIDIA chips, but a new shift has started.”