Amazon Could Generate $50B from Standalone Chip Unit Beyond AWS Demand
Amazon could spin off its Graviton and Trainium chips into a $50 billion external sales business from a $20 billion AWS internal run rate, contingent on building production capacity beyond AWS demand. Analysts estimate the standalone chip arm could rival Nvidia if external sales volume materializes.
1. Standalone Chip Business Plan
Amazon is evaluating launching its custom Graviton and Trainium chips to third-party customers, projecting external sales could elevate the $20 billion internal AWS run rate to $50 billion annually. Execution hinges on securing additional production capacity beyond AWS needs, leveraging in-house chip designs to diversify revenue and challenge incumbent chip vendors.