Amazon.com says our Chips business continues to grow rapidly

CEO Andy Jassy says: “Our Chips business continues to grow rapidly and is larger than what a lot of folks thought. We saw nearly 40% quarter-over-quarter growth in Q1, and our annual revenue run rate is now over $20 billion and growing triple-digit percentages year over year. But this somewhat masks the size. If our chips business was a standalone business and sold chips produced this year to AWS and other third parties as other leading chip companies do, our annual revenue run rate would be $50 billion. As best as we can tell, our custom silicon business is now one of the top three data center chip businesses in the world. The speed at which we’ve gotten here is extraordinary. We have momentum for our custom AI silicon. We’ve recently shared very large, multi-year, multi-gigawatt training commitments from the two leading AI labs in the world, Anthropic and OpenAI. As well as an increasing number of companies like Uber betting on Trainium. We now have over $225 billion in revenue commitments for Trainium. Our Trainium 2 chip has about 30% better price performance than comparable GPUs and is largely sold out. Trainium 3, which just started shipping at the start of 2026 and is 30 to 40% more price performance than Trainium 2, is nearly fully subscribed. Much of Trainium 4, which is still about 18 months from broad availability, has already been reserved.” Comments taken from Q1 earnings conference call.

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