Amazon isn’t just building AI chips for itself anymore. The company is actively negotiating to sell its custom Trainium processors to outside companies for use in their own data centers, a move that would transform Amazon from a cloud-services landlord into a direct competitor in the AI chip market.
The shift is significant because it means Amazon’s silicon, developed in-house by its Annapurna Labs division, would no longer live exclusively inside Amazon Web Services infrastructure. Other companies could buy the chips outright and run them on their own hardware.
The business behind the silicon
Amazon’s chip ambitions aren’t exactly a side hustle. CEO Andy Jassy disclosed in April that the company’s in-house chip business had surpassed a $20 billion annual revenue run rate.
The latest generation processor, Trainium3, launched in late 2025 and represents a meaningful leap forward. Amazon claims it delivers up to four times the performance of its predecessor, Trainium2, while cutting training and inference costs by as much as 50% compared to conventional GPUs.
