How Amazon became one of the world’s top chip companies in a decade
Amazon’s custom silicon business exceeded a $25 billion annual revenue run rate—here’s what that means for customers and the future of AI.
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Key takeaways Amazon's custom chips business exceeded a $25 billion annual revenue run rate with triple-digit growth year over year. Trainium3 delivers up to 40% better price-performance than Trainium2. Graviton serves 98% of the top 1,000 EC2 customers with up to 40% better price-performance.
When Amazon acquired chip design company Annapurna Labs in 2015, the AI boom was still years away. The bet was straightforward: if you design chips specifically for cloud workloads rather than relying on general-purpose hardware, you can deliver better performance at lower cost.
A different bet on AI infrastructure A decade later, that bet has become one of the fastest-growing businesses in Amazon’s history.
Amazon’s chip business —spanning Trainium for AI training and inference and Graviton for general cloud computing (and increasingly, agentic AI)—all based on the Nitro System for security and networking—recently exceeded a $25 billion annual revenue run rate, growing triple-digit percentages year over year.
We're unusually well-positioned for this AI inflection given our leading price-performance chips in both AI (with Trainium) and CPUs (with Graviton). Andy Jassy Amazon CEO Chronology of Amazon Designed Chips The below chronology details the multiple generations of Amazon's purpose-built chips. Filter by family All Nitro Graviton Inferentia Trainium
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This briefing is based on reporting from About Amazon. Use the original post for full primary-source context.
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