Amazon to sell its Trainium AI chips to customers outside AWS
Amazon announced that it will make its custom Trainium AI chips available to external customers, with sales expected to begin in the later part of 2027. CEO Andy Jassy said strong demand is driving the decision and that the move could create a significant new revenue stream while also presenting a trade‑off with internal cloud use. The company reported third‑quarter revenue of $201.9 billion, up 12% year‑over‑year, and AWS revenue of $46.0 billion, up 39.3%.
Why it matters
The external chip sales could diversify Amazon’s revenue and reduce reliance on Nvidia GPUs, while the timing and allocation decisions will affect future cash‑flow and margin outlooks (as noted by Jassy). The Q4 revenue forecast of $240‑$247 billion also sets expectations for the next quarter.
Key facts
- 1Andy Jassy said on the third‑quarter earnings call that Amazon plans to sell Trainium chips outside AWS in the latter half of 2027. biz.chosun.com
- 2AWS third‑quarter revenue was $46.0 billion, up 39.3% from a year earlier. biz.chosun.com
- 3Amazon’s total third‑quarter revenue was $201.9 billion, up 12% year‑over‑year. biz.chosun.com
- 4Operating margin for the quarter was a record 13.9%. biz.chosun.com
- 5Jassy projected AWS revenue will grow more than 40% in 2027 and 2028, reaching $1.0 trillion within five to ten years. biz.chosun.com
- 6Amazon forecast fourth‑quarter revenue of $240 billion to $247 billion. finance.yahoo.com
Open questions
- Timing of external sales: material 1 and 3 say late 2027, while material 2 says the latter half of next year.
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.