Amazon Custom Chips Hit $25B Annual Run Rate, Rattling Nvidia Dominance

Amazon's custom chip business has reached a $25 billion annual revenue run rate, driven by strong demand for Trainium AI accelerators and Graviton CPUs.

The company's chips offer significant cost savings compared to Nvidia hardware, with customers saving 30% to 40% while still achieving excellent performance.

Amazon's custom-built AI chips are designed to handle specific workloads, unlike Nvidia's GPUs which are general-purpose.

The growing customer list includes major companies like OpenAI, Anthropic, Meta Platforms, and Uber, with many smaller startups also turning to AWS custom chips as a cheaper alternative to Nvidia.