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Amazon Plans to Sell AI Chips, Targeting Nvidia's Market Dominance

Amazon Plans to Sell AI Chips, Targeting Nvidia's Market Dominance

First seen 19 Jun 2026, 22:23 UTC • •
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ThreatCluster AI
ThreatCluster •June 20, 2026 at 21:50 UTC
  • •AWS is exploring selling Trainium AI chips to third-party data centers.
  • •The potential revenue from chip sales could reach $50 billion annually.
  • •This move directly challenges Nvidia's dominance in the AI chip market.

Amazon Web Services (AWS) is considering selling its custom Trainium AI chips to third-party data centers, aiming to challenge Nvidia's stronghold in the AI chip market. AWS's AI chief, Peter DeSantis, confirmed that discussions are in early stages, following CEO Andy Jassy's statement about the high demand for their chips. Jassy indicated that if AWS's chip business were standalone, it could generate an annual revenue run rate of approximately $50 billion. Currently, Trainium chips are exclusive to AWS, utilized by organizations like OpenAI and Anthropic. The move could potentially disrupt Nvidia's $326 billion revenue run rate, although AWS would need to manage existing customer demand and production capacity. The capacity for Trainium chips has reportedly sold out quickly, complicating the transition to external sales. AWS has historically declined to sell chips directly but is now reconsidering this strategy.

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Updated 93d ago How this analysis works

Timeline

2026-04-01
Andy Jassy's shareholder letter
Jassy announced the high demand for AWS's Trainium chips and hinted at potential external sales.
Techcrunch
2026-06-18
AWS confirms discussions on chip sales
Peter DeSantis stated that AWS is in talks to sell Trainium chips to other companies for data centers.
Techcrunch
2026-06-19
Article published on AWS chip sales
Feeds.4Sysops reported on Amazon's consideration of selling Trainium AI chips for external data centers.
Feeds.4Sysops

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