Amazon’s custom AI chips see triple-digit revenue growth, with a $225 billion backlog driving demand beyond internal use.
Amazon’s AI chip business has surged, with a $225 billion backlog and an annual revenue run rate exceeding $20 billion. CEO Andy Jassy revealed nearly 40% quarter-over-quarter growth in Q1, driven by demand for its Trainium accelerators from third-party customers.
The company’s custom chips aim to reduce reliance on Nvidia while cutting AI data center costs. Amazon’s rapid expansion in this segment highlights its growing role in the AI semiconductor market, with revenue growing at triple-digit percentages year over year.
This growth underscores Amazon’s push into high-performance AI infrastructure, positioning it as a key competitor in the semiconductor space.