Overview
- CEO Andy Jassy, in Thursday’s annual shareholder letter, said Amazon may sell its Trainium accelerators or full racks to outside customers, a shift that would put it in direct competition with Nvidia and AMD.
- Amazon said its custom silicon portfolio, including Trainium, Graviton and Nitro, now exceeds a $20 billion annual run rate with triple‑digit growth, and management estimated a standalone business could approach $50 billion if sold externally.
- Demand remains intense as Trainium2 is sold out and Trainium3 is nearly fully subscribed only weeks after initial shipments, underscoring limited near‑term supply for any external sales.
- AWS’s AI revenue is running at about $15 billion a year, yet Jassy said the unit is still capacity‑constrained despite adding 3.9 gigawatts in 2025 and plans to double compute capacity by 2027.
- Amazon reaffirmed heavy infrastructure spending with roughly $200 billion in capex and a $25 billion data‑center buildout in Mississippi, and its stock rose roughly 5%–6% after the disclosures.