Amazon hopes to challenge Nvidia more directly by selling its AI chips
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Amazon is moving to challenge Nvidia’s dominance in the AI chip market by planning to sell its in-house AI chips, like Trainium, to other companies for data center use. With a potential $50 billion annual revenue run rate, Amazon’s chip business could become a major competitor, though Nvidia currently leads with a $326 billion revenue stream. The shift comes as demand for Amazon’s AI chips outpaces supply, raising questions about whether it can scale production to meet both internal and external needs.
Amazon Web Services is exploring selling its Trainium AI chips to third-party companies for data center use, a move that would push it more directly into Nvidia’s core market. The effort is still in early stages, and Amazon has historically kept the chips for its own cloud services amid strong demand and limited capacity.