Amazon CEO Andy Jassy says the company [1]may eventually sell its Trainium AI chips directly to outside customers , not just through AWS, which would put Amazon in more direct competition with Nvidia. "There's so much demand for our chips that it's quite possible we'll sell racks of them to third parties in the future," Jassy wrote in his [2]annual shareholder letter Thursday. He also revealed the company's chip business is already running at more than $20 billion annually, with demand so strong that current and even future generations are largely spoken for. Quartz reports:

> Access to Amazon's chips is currently limited to Amazon Web Services, with customers paying for cloud-based usage rather than owning any physical hardware. Selling to AWS and external customers alike, as standalone chipmakers do, would put annual revenue at around $50 billion, up from the $20 billion the company estimates for the year, Jassy said. The $20 billion figure spans three product lines: Trainium, the AI accelerator chip; Graviton, a general-purpose processor; and Nitro, a chip that helps run Amazon's EC2 server instances. All three are growing at triple-digit rates year over year, Jassy claimed in his letter.

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> Jassy said demand for Trainium has outpaced supply at each generation. Trainium2 is essentially unavailable, with its entire allocated capacity spoken for. Trainium3 started reaching customers in early 2026, and reservations have filled nearly all available supply. Even Trainium4 -- which is not expected to reach wide release for another year and a half -- has substantial pre-orders committed. Jassy argued that a full-scale Trainium rollout could shave tens of billions off annual capital costs while meaningfully widening profit margin.



[1] https://qz.com/amazon-trainium-ai-chips-third-party-sales-jassy-040926

[2] https://www.aboutamazon.com/news/company-news/amazon-ceo-andy-jassy-2025-letter-to-shareholders