Amazon’s Custom Graviton Chips Reach $10B Run Rate, Driving Arm Revenue Surge
Amazon’s custom Graviton chips achieved a $10 billion annual revenue run rate, more than doubling year-over-year as most new EC2 capacity now uses Graviton processors. Arm Holdings’ data center royalty revenue also doubled last quarter and could surpass smartphone royalties as its largest segment within three years.
1. Graviton Annual Revenue Surpasses $10 Billion
Amazon’s custom Arm-based Graviton processors hit a $10 billion annual revenue run rate, more than doubling from the prior year as customers migrate workloads to in-house silicon.
2. Majority of New AWS EC2 Capacity on Graviton
The majority of newly launched EC2 instances now run on Graviton chips, highlighting AWS’s strategy to boost performance and reduce hosting costs through proprietary processors.
3. Arm Holdings Sees Doubling Data Center Royalties
Arm Holdings reported that data center royalty revenue doubled in its recent quarter, and management expects this segment to outgrow smartphone royalties as its top revenue source within three years.