Amazon AI Chip Business Hits $25 Billion Run Rate
Amazon's AI chip business is growing rapidly and has reached a meaningful annual revenue run rate of over $25 billion, according to CEO Andy Jassy. This figure represents a 25% quarter-over-quarter increase from the first quarter, when the business had a run rate of about $20 billion.
Jassy mentioned during Amazon's second-quarter earnings report that the demand for Trainium AI chips is high among AWS customers, and this demand is not slowing down. The custom AI chips are competitive on price-performance metrics, offering better value than comparable GPUs from Nvidia.
Amazon expects its AI chip business to lead to meaningful operating margin gains within its cloud computing segment if it decides to sell the chips. This would be another significant growth driver for the tech giant, which already generates over $700 billion in annual revenue.