Amazon CEO Says AI Chip Business Hits $20B Run Rate, Could Grow to $50B
AWS AI revenue run rate hit $15B in Q1 2026 after adding 3.9GW capacity in 2025 and planning to double it by 2027. CEO Andy Jassy said Amazon’s custom AI chip business has a $20B run rate and could reach $50B standalone if sold to third parties.
1. AWS AI Revenue and Capacity
Amazon’s AWS unit reported an AI revenue run rate of $15 billion in Q1 2026, driven by rapid customer adoption. The unit added 3.9 gigawatts of AI compute capacity in 2025 and aims to double that by 2027 to address current constraints.
2. Chip Business Run Rate and Growth
CEO Andy Jassy highlighted Amazon’s custom chip business reached a $20 billion annual run rate, reflecting triple-digit year-over-year growth. The business currently monetizes chips through AWS EC2, but a standalone model could push run rates to $50 billion.
3. Third-Party Chip Sales Outlook
High demand has led to Trainium2 chips selling out and Trainium3 nearly fully subscribed since shipments began in early 2026. Jassy indicated Amazon may sell AI processor racks to third parties, potentially boosting margins and saving tens of billions in annual capex.