Amazon hopes to challenge Nvidia more directly by selling its AI chips

TechCrunch · 2 months ago · 9

Amazon Web Services is considering selling its Trainium AI chips to external companies beyond its own cloud customers, potentially challenging Nvidia's dominance in AI chip sales. CEO Andy Jassy stated in his April shareholder letter that if AWS's chip business were standalone, its annual run rate would be approximately $50 billion, and the company is in early-stage talks with potential buyers. This shift would require AWS to manage severe manufacturing constraints, as current Trainium capacity and future Trainium4 capacity have already sold out, and AWS would need to secure additional chip production from partners like TSMC while competing against Nvidia for foundry resources.