AWS Trainium Chips Deliver 30-40% Better Performance as Unit Hits $20B Run Rate
In his 2025 shareholder letter, Amazon CEO Andy Jassy said AWS's Trainium chips deliver 30%-40% better price-performance than comparable GPUs, with Trainium3 shipping and Trainium4 reservations largely filled. Amazon’s custom chips business hit a $20 billion annual run rate—double Q4 2025 levels—and could reach $50 billion if sold externally.
1. Jassy Highlights Trainium Performance
In his annual letter, Jassy asserted that AWS’s custom Trainium chips now offer 30%-40% better price-performance than comparable GPUs and positioned them as a cost-effective alternative to Nvidia’s offerings while maintaining partnerships with Nvidia for select customers.
2. AI Chip Roadmap and Adoption
Trainium2 has delivered roughly 30% price-performance gains and largely sold out, Trainium3 began shipping in early 2026 and is nearly fully subscribed, while significant portions of Trainium4 reservations have been secured about 18 months before its planned broad availability.
3. Revenue Run Rate and Market Implications
Amazon’s custom chips division—which includes Graviton, Trainium and Nitro networking cards—reached a $20 billion annual run rate, doubling since Q4 2025, and CEO projections suggest a potential $50 billion run rate if units were sold externally, underscoring rapid triple-digit growth and strengthening AWS’s competitive position.