Amazon May Sell Trainium AI Chips Externally, Potentially Boosting Chip Revenue to $50B
Chief Executive Andy Jassy said Amazon's Trainium, Graviton and Nitro chips generated more than $20 billion in annualized revenue, with each product line growing over 100% year over year. He proposed selling Trainium racks to external buyers, which could elevate chip division revenue to roughly $50 billion annually.
1. Annualized Chip Revenue Tops $20 Billion
Amazon's Trainium, Graviton and Nitro chips collectively generated over $20 billion in annualized revenue, with each product line experiencing triple-digit year-over-year growth driven by surging demand for AI acceleration and server processing.
2. External Sales Proposal Aims for $50 Billion
CEO Andy Jassy floated selling racks of Trainium AI chips to third-party buyers beyond AWS, projecting that external sales alongside internal usage could boost the chip division's annual revenue to roughly $50 billion.
3. Supply Constraints Across Generations
Demand has outstripped supply at every Trainium generation: Trainium2 capacity is fully allocated, Trainium3 reservations have nearly filled initial production, and Trainium4 already holds substantial pre-orders despite a wide release still 18 months away.
4. AWS Capex and Profitability Impact
AWS plans approximately $200 billion in capital expenditures for 2026, with AI-related hardware spending up $50.7 billion year over year, which reduced free cash flow to $11 billion in 2025 from $38 billion.