Amazon Plans Graviton-Trainium Chip Spin-off as AWS Posts 28% Q1 Growth
Amazon's AWS grew revenues 28% in Q1 2026 and generated 59% of operating income, driven by triple-digit growth in custom AI chips and new deals with OpenAI and Anthropic. It earmarked $200 billion capex for 2026 and plans a standalone Graviton-Trainium chip business beyond its $20 billion AWS run rate.
1. AWS Q1 Revenue and Profit Mix
AWS revenue rose 28% in Q1 2026, with the division contributing 59% of Amazon’s operating income while representing just 21% of total sales, highlighting its outsized profit role.
2. Custom AI Chip Growth
Sales of Graviton and Trainium chips achieved triple-digit growth as Amazon secured major AI clients, including OpenAI and Anthropic, bolstering AWS’s infrastructure business.
3. 2026 Capital Expenditure Plan
Amazon allocated $200 billion in capital expenditures for 2026, aiming to expand data-center capacity and support AI workloads across its cloud and retail operations.
4. Standalone Chip Business Strategy
The company intends to spin off its internal $20 billion AWS chip run rate into a standalone Graviton-Trainium business to capture third-party demand.