Amazon Explores $50 Billion AI Chip Sales, Shares Jump 2.9%
AMZN•Amazon is in talks to sell racks of its Trainium AI chips externally, potentially scaling its chip division to an annual run rate of about $50 billion, CEO Andy Jassy said. Shares rose 2.9% to $244.37 as investors price in new growth avenues beyond AWS cloud services.
1. Amazon in Talks to Sell Trainium Chips
Amazon’s AI chief Peter DeSantis said the company is in active discussions to sell racks of its Trainium AI chips to third-party data centers, marking a shift from its historical practice of keeping custom silicon for AWS alone.
2. $50 Billion Standalone Run Rate
In his April shareholder letter, CEO Andy Jassy projected that if the chip business operated as a standalone unit selling to AWS and external customers, it could reach an annual run rate of roughly $50 billion.
3. Stock Reaction and Partner Gains
Amazon shares closed up 2.89% at $244.37 following the news, while Marvell Technology—AWS’s lead design and manufacturing partner for Trainium—surged 7.27% to $310.58 on expectations of increased chip orders.
4. Strategic and Competitive Implications
Broadening Trainium sales transforms Amazon’s chip effort from an internal cost-saving tool into a standalone business opportunity, intensifying its role in AI infrastructure and positioning it as a competitor to established chip vendors.
