Amazon to Sell Sold-Out Trainium Gen 3 Chips to Third-Party Data Centers
AMZN•Amazon is selling its custom Trainium AI chips to third-party data centers after third-generation units sold out, with fourth-generation chips expected in high demand next year. This external expansion pits Amazon directly against NVIDIA in AI infrastructure and triggered a 2.55% stock increase.
1. Expansion Beyond AWS
Amazon announced it will offer its Trainium AI chips to third-party data centers in addition to AWS, marking the first external customer sales and broadening its AI hardware market reach.
2. Third-Gen Sellout and Fourth-Gen Demand
Third-generation Trainium units have sold out due to strong demand, and Amazon expects its upcoming fourth-generation Trainium chips to drive further sales growth starting next year.
3. Competitive Market Impact
The move positions Amazon against NVIDIA in the AI infrastructure market, attracting investor attention and prompting a 2.55% uplift in Amazon’s share price following the announcement.
