Andy Jassy, Amazon’s CEO, stated on an earnings call that the company’s internally developed chips—including Trainium, Graviton, and Nitro—now rank among the world’s three largest data-center semiconductor businesses. The division reportedly operates at a $20 billion annual run rate, which Jassy said would equate to $50 billion if sold externally like a traditional chipmaker. Amazon has secured over $225 billion in multiyear revenue commitments for Trainium from clients including Anthropic, OpenAI, and Uber. The company also charges a 30% premium for its own chips versus comparable Nvidia silicon on its cloud while continuing to purchase Nvidia’s products, effectively competing and partnering simultaneously. Jassy noted that Trainium2 offers roughly 30% better price-performance than equivalent GPUs, and Trainium3 improves further. He claimed the technology will save Amazon tens of billions in capital expenditure and deliver a significant operating margin advantage.