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Amazon Weighs Direct Sales of AI Chips in Challenge to Nvidia’s Dominance

AWS says Trainium capacity has sold out and the chips business could reach a $50 billion annual run rate, Jassy said.

Summary by Business Report
Amazon is exploring a major expansion of its artificial intelligence chip business by considering direct sales of its custom AI processors to outside companies, Bloomberg reports.  The initiative centers on Trainium, a family of chips designed to provide a lower-cost alternative to Nvidia’s dominant graphics processors for training and running AI models. Until now, Amazon has primarily used these chips within its cloud computing platform, where …

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Amazon.com Inc. is in discussions to sell its custom-made AI chips for use in other companies’ data centers, in a key expansion of its efforts to erode Nvidia Corp.’s domain. Peter DeSantis, director of Amazon’s AI, pointed out that the world’s largest cloud computing company has already started negotiations, although it declined to reveal the name of potential customers. “We see AI infrastructure as a rapidly evolving sector,” he said in an int…

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Zero Hedge broke the news in United States on Thursday, June 18, 2026.
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