🤖AWS Considers Selling AI Chips to Competitors

AWS Might Sell Its Own AI Chips

AWS is considering selling its proprietary Trainium AI chips to other companies for use in data centers. This development stems from AWS CEO Andy Jassy’s annual shareholder letter, where he hinted at the possibility of making these chips available beyond AWS's own infrastructure. The company's AI chip demand has been so high that it's now looking into manufacturing a surplus through partners like TSMC to meet external needs. If AWS were a standalone business, its annual run rate would be around $50 billion, putting it in the same league as major tech players. This move could significantly impact competitors like Nvidia, which currently dominates the AI chip market with a revenue run rate of $326 billion. However, AWS has historically resisted selling chips directly to third parties due to its integrated business model. The decision to sell Trainium chips would likely require leaving current customers on waiting lists until enough surplus can be manufactured. With the next generation Trainium4 chip not expected for over a year, this could create an interesting market dynamic.