Amazon aims to challenge Nvidia with AI chip sales

Amazon Web Services (AWS) is exploring direct sales of its custom-designed AI chips, Trainium, to external companies for data center use. This move represents a significant potential challenge to Nvidia's current dominance in the AI chip market. AWS CEO Andy Jassy indicated that if their chip business were standalone, it could achieve a $50 billion annual run rate, highlighting substantial demand. While AWS historically kept its chips in-house to drive revenue from associated cloud services, the company is now considering external sales, potentially impacting current customer waitlists and requiring increased manufacturing capacity.