Amazon’s AI Chip Business Poised for Growth
Amazon’s AI chip business is experiencing rapid growth, with CEO Andy Jassy revealing that its annual revenue run rate has exceeded $20 billion and is growing at triple-digit percentages year-over-year. This segment includes the company’s Graviton, Trainium, and Nitro chips. If treated as a standalone business, it could generate around $50 billion annually, making it larger than 82% of Fortune 500 companies.
Jassy noted that customer commitments for this year’s capital expenditures, projected to be $200 billion in 2026, are already in place, signifying strong future monetization expectations for 2027 and 2028. Amazon’s total revenue for 2025 was reported at $717 billion, suggesting the AI chip business could represent approximately 7% of total revenue.
