Amazon's chips become a $20B business
theregister.com • • business
Key Points:
- Amazon's semiconductor business has surpassed a $20 billion annual run rate and would reach $50 billion if including internal AWS chip usage, making it one of the top three datacenter chip businesses globally, according to CEO Andy Jassy.
- Amazon's custom silicon portfolio, including Graviton processors, Trainium AI training chips, and Nitro security chips, is growing over 100% year-over-year, with major AI labs like OpenAI and Anthropic committing multi-gigawatt Trainium usage.
- Trainium chips are in high demand, with Trainium2 largely sold out, Trainium3 nearly fully subscribed, and Trainium4 reservations already made despite being 18 months from broad availability.
- AWS reported Q1 revenue of $181.5 billion, up 17% year-over-year, with cloud unit AWS growing 28% to $37.6 billion, driven by AI revenue now exceeding a $15 billion run rate.
- Amazon's Bedrock platform for foundation models saw token processing surpass all prior years combined, with 170% quarterly spending growth, new GPT model previews, and a partnership with Cerebras to deliver the fastest AI inference speeds in the cloud.
