Tech & AI
Amazon says it will sell its Trainium AI chips outside AWS from late 2027
Chief executive Andy Jassy told investors the in-house accelerator will move beyond Amazon's own cloud, even as the group lifts its spending plans.
HedgeWeekly Tech & AI Desk ·
Amazon plans to start selling its Trainium artificial-intelligence chips to outside customers in late 2027, chief executive Andy Jassy said on the company's third-quarter earnings call on October 29. Until now the chips, which are designed to train and run AI models, have been available only to customers renting capacity through Amazon Web Services (AWS), its cloud arm.
Amazon has not named a buyer, a price or a volume for external sales, according to the reports of the call. It has open-sourced a software tool called TorchNeuron, which lets developers run code written for the popular PyTorch framework on Trainium without rewriting it. The company said revenue commitments for its Graviton and Trainium chips each rose more than twentyfold from a year earlier, and that customers using its custom silicon saved over $2 billion in the quarter.
The plan sits alongside heavy spending. AWS revenue grew 39% to $46 billion in the quarter and its order backlog stands at $578 billion. Amazon expects about $220 billion of cash capital expenditure in 2026 and has said 2027 will be meaningfully higher. Earlier this year, Amazon disclosed that Anthropic can secure up to five gigawatts of Trainium capacity and that OpenAI will use about two gigawatts from 2027.
Why it matters: selling chips directly would put Amazon in more direct competition with Nvidia, whose processors still anchor most AI data centres, and would try to turn a cost-saving internal project into a separate revenue line. The company has not yet shown what that business earns, and a late-2027 start leaves a long wait. Investors will watch for the first named external customer, any disclosure of chip-level margins, and whether Amazon's spending plans can be funded from operating cash flow.