By Julie Bort
Publication Date: 2025-12-03 22:01:00
Can any company, big or small, really topple Nvidia’s AI chip dominance? Maybe not. But there are hundreds of billions of dollars of revenue for those who can even peel off a chunk of it for themselves, Amazon CEO Andy Jassy said this week.
As expected, the company revealed at the AWS re:Invent conference the next generation of its Nvidia-competitor AI chip, Trainium3, which is 4x faster yet uses less power than the current Trainium2. Jassy revealed a few tidbits about the current Trainium in a post on X that shows why the company is so bullish on the chip.
He said the Trainium2 business “has substantial traction, is a multi-billion-dollar revenue run-rate business, has 1M+ chips in production, and 100K+ companies using it as the majority of Bedrock usage today.”
Bedrock is Amazon’s AI app development tool that allows companies to pick and choose among many AI models.
Jassy said Amazon’s AI chip is winning among the company’s enormous roster of cloud customers because it “has price-performance advantages over other GPU options that are compelling.” In other words, he believes it works better and costs less than those “other GPUs” out there on the market.
That is, of course, Amazon’s classic MO, offering its own homegrown tech at lower prices.
Additionally, AWS CEO Matt Garman offered even more insight in an interview with CRN, about one customer responsible for a big chunk of those billions in revenue: No shock here, it’s Anthropic.
