Amazon’s AWS division has sold through its allocation of in-house AI and machine learning chips, indicating rapid uptake by enterprise customers seeking lower-cost, high-performance alternatives to standard GPUs. The sell-out suggests Amazon may need to ramp manufacturing or secure additional foundry capacity to avoid service bottlenecks and maintain growth momentum.

Meanwhile, Nvidia has reported another quarter of accelerating top-line growth driven by surging data center sales and AI workloads. The chipmaker’s performance highlights fierce competition in the AI hardware market and may put upward pressure on Amazon’s procurement costs as it seeks to balance custom and third-party chip deployments.