"Investors know Amazon ( NASDAQ:AMZN | AMZN Price Prediction) for its dominance in e-commerce and cloud computing through AWS, and are likely familiar that it has pushed into chipmaking with its Trainium line that is designed for AI training and inference. Yet, their thoughts on its silicon efforts often don't go much beyond that and, in doing so, overlook the deeper significance it holds."
"In its fourth-quarter earnings release earlier this month, Amazon highlighted the strong progress being made in its AWS custom chip operations . The company stated that its chips business is "gaining significant momentum," with Trainium and Graviton achieving a combined annual revenue run rate exceeding $10 billion, reflecting triple-digit year-over-year growth rates. CEO Andy Jassy noted, "our chips business growing triple digit percentages year-over-year - this growth is happening because we're continuing to innovate at a rapid rate, and identify and knock down customer problems.""
Amazon's AWS custom chips business is expanding rapidly, with Trainium and Graviton reaching a combined annual revenue run rate above $10 billion and showing triple-digit year-over-year growth. AWS segment sales rose to $35.6 billion in Q4 and $128.7 billion for the full year. Trainium 2 is fully subscribed with 1.4 million chips deployed, powering most Bedrock inference for over 100,000 companies and supporting Project Rainier, an AI compute cluster with more than 500,000 chips used by Anthropic. Trainium 3 is in high-demand production, with nearly all supply expected committed by mid-2026, and Trainium 4 is planned for 2027.
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