Amazon’s $25B Custom Chip Run Rate: Is Nvidia in Trouble? – MarketWise

Key Points

• Amazon’s custom-chip business has surpassed a $25 billion annual revenue run rate, driven by strong demand for Trainium AI accelerators and Graviton CPUs that offer meaningful cost savings versus Nvidia hardware.
• AWS custom-chip capacity is attracting major customers including OpenAI, Anthropic, Meta Platforms, and Uber, while newer Trainium capacity is nearly sold out and future generations are being booked well ahead of launch.
• Nvidia remains the dominant AI-chip player, but Amazon’s growing in-house silicon gives AWS greater control over costs and infrastructure while creating a meaningful competitive threat to Nvidia, AMD, and Intel.