Amazon plans to sell Trainium AI chips to third‑party data centers starting late 2027
Amazon’s cloud unit reported its strongest growth in nearly five years, with AWS revenue jumping 39.3% to $46.0 billion and operating margin reaching a record 38.7%. The quarter’s operating income rose 61% to $28.1 billion, while total company revenue hit $201.9 billion, $350 million shy of consensus. CEO Andy Jassy used the earnings call to confirm that Amazon will begin selling its custom…
Key points
- Amazon announced it will sell Trainium AI accelerator chips to external data centers starting in late 2027.
- AWS Q3 2026 revenue rose 39.3% to $46.0 billion, with operating margin hitting a record 38.7%.
- Trainium chips claim 30%‑40% better price‑performance than comparable Nvidia GPUs, saving customers over $2 billion in Q3.
Trainium, which powers Amazon Bedrock, is claimed to deliver 30%‑40% better price‑performance than comparable Nvidia GPUs, saving customers more than $2 billion in the quarter. Anthropic has pledged roughly five gigawatts of Trainium capacity and OpenAI about two gigawatts. If the merchant‑chip plan proceeds, Amazon would directly challenge Nvidia’s 81%‑90% share of the AI accelerator market. Jassy emphasized that AI workload growth is so rapid that selling chips externally will not cannibalize AWS revenue, noting a $578 billion backlog and a $25 billion‑plus run rate for Trainium/Graviton hardware.
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Amazon Commits to Selling Trainium Chips Outside AWS; Late-2027 Target Set
techtimes.com · 29 October 2026
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