By Dave Smith
Publication Date: 2026-04-10 09:30:00
Amazon (NASDAQ: AMZN) CEO Andy Jassy isn’t being subtle about where he thinks the AI chip market is headed. In his 2025 annual letter to shareholders (1) published Thursday, Jassy made his most pointed comments yet about Amazon Web Services’ growing challenge to Nvidia’s dominance in AI semiconductors, framing the company’s custom Trainium chips (2) as a cost-effective alternative to Nvidia’s GPUs.
“Virtually all AI thus far has been done on Nvidia chips, but a new shift has started,” Jassy wrote. “We have a strong partnership with Nvidia, will always have customers who choose to run Nvidia, and we will continue to make AWS the best place to run Nvidia. However, customers want better price-performance. We’ve seen this movie before.”
The “movie” Jassy is referencing here is AWS’s experience displacing Intel in cloud computing. “In the CPU space, virtually all of the workloads ran on Intel chips until we invented Graviton in 2018,” he wrote. “Graviton, which has up to 40% better price-performance than other x86 processors, is now used expansively by 98% of the top 1,000 EC2 customers.”
“The same story arc is unfolding in AI,” he added.
Amazon declined Moneywise‘s request to comment further on the matter.
Jassy laid out the Trainium roadmap in his annual letter. Amazon’s second-generation AI chip, Trainium2, delivered about 30% better price-performance than comparable GPUs, he wrote, and “has largely…
