Amazon CEO Eyes $50 Billion Annual AI Chip Business

Andy Jassy, the CEO of Amazon, outlined a theoretical $50 billion annual run rate for a business centered on artificial intelligence chips. In a letter to shareholders, Jassy cited strong demand for the company's Trainium chips, which are engineered for efficiency and scale.

Jassy suggested that Amazon may expand its business model by selling racks of these chips to third parties. This projected revenue figure encompasses both direct hardware sales and income generated through Amazon Web Services. While the company reported $717 billion in total revenue last year, this expansion into AI chip hardware is positioned as a significant growth catalyst, though the majority of the estimated $50 billion would remain tied to AWS operations.