Amazon Custom AI Chips Reach $25 Billion Revenue Run Rate

Amazon.com is positioning itself as a value-driven competitor to Nvidia in the artificial intelligence hardware market through the development of its own custom chips. The company has reported triple-digit growth for its Graviton central processing units and Trainium AI accelerators, with its custom chip annual revenue run rate now reaching $25 billion.

While Amazon develops its own hardware, it maintains a partnership with Nvidia by offering Nvidia GPUs through Amazon Web Services. CEO Andy Jassy stated that the company will continue making AWS the best place to run Nvidia chips, though he indicated the possibility of establishing a stand-alone chip business in the future.

Market demand for AI hardware currently supports both providers. Customers typically utilize Nvidia products for high-performance workloads while adopting Amazon chips as more cost-effective alternatives.