Amazon hopes to challenge Nvidia more directly by selling its AI chips
AWS is in talks to sell its chips to other data centers. CEO Andy Jassy has said this represents a $50 billion opportunity for the company.
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Amazon Web Services is exploring selling its homegrown AI chips to other companies for use in data centers, potentially creating a significant competitor to the dominant chip maker in this market. The company's CEO has estimated that if this chip business were standalone, it could reach an annual run rate of approximately $50 billion, comparable to a major existing chip manufacturer's revenue. AWS has historically kept its chips for internal use only, partly because the company profits from multiple services beyond just the chips themselves, and partly because current chip demand has exceeded production capacity. This move represents a direct challenge to the current market leader's dominance in AI chip sales.
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