By Robert Scammell
Publication Date: 2026-04-09 14:58:00
Andy Jassy used his annual letter to shareholders to tout Amazon’s AI chip progress — and lay down the gauntlet to Nvidia.
Amazon is an Nvidia customer, but the e-commerce giant also makes its own AI chips, called Tranium.
Jassy said Amazon’s chip business is “on fire” and that this demand is part of a shift in which companies are diversifying where they buy their AI chips from.
“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, Jassy said that customers “want better price-performance.”
He compared the shift to Amazon eating into Intel’s dominance in the CPU space with its own chip that it launched in 2018, called Graviton.
“The same story arc is unfolding in AI,” he said….
