Amazon chips no longer just a side dish, they're a $20B biz (www.theregister.com)

Amazon has significantly expanded its semiconductor business, surpassing a $20 billion annual run rate and positioning itself as one of the top three datacenter chip providers globally. CEO Andy Jassy revealed that the company could see this figure approach $50 billion if it included internal chip sales, highlighting the rapid growth of its custom silicon offerings like Graviton processors and Trainium AI training chips, which grow over 100% year over year. Major clients, including OpenAI and Anthropic, have made substantial commitments to use Trainium, with OpenAI set to consume two gigawatts while Anthropic has secured up to five gigawatts for their advanced AI models. The significance of Amazon's growth in chip manufacturing underscores the increasing demand for specialized AI hardware as organizations shift to more complex workloads. Jassy noted that Amazon’s Trainium2 chip has shown a 30% improvement in price performance over similar GPUs, yet these chips are in high demand and largely sold out. As Amazon continues to innovate with offerings like Bedrock for deploying AI applications and has seen a 170% increase in platform spending, its advancements signal a competitive edge in the AI cloud services market, further solidifying AWS's role in shaping the future of AI infrastructure.