Amazon CEO Andy Jassy stated on a recent earnings call that the company's custom data center chips—Trainium, Graviton, and Nitro—will cut tens of billions of dollars in annual capital spending and improve operating margins by several hundred basis points. The chip business, running at a $20 billion annual rate (equivalent to $50 billion if sold externally), is now one of the three largest globally, according to Jassy. AWS has secured over $225 billion in multiyear revenue commitments for Trainium from clients including Anthropic and Uber, plus a $364 billion backlog. The cloud division already posts a 37.7% operating margin on 28% year-over-year growth, the fastest in 15 quarters. Amazon continues buying Nvidia chips while charging a 30% premium over them on its own cloud, profiting as both vendor and competitor.