Amazon's custom chip business generates roughly $20 billion in annual revenue and is expanding at more than 100% year over year, with CEO Andy Jassy saying the run rate would approach $50 billion if sold directly.

Amazon has built a semiconductor operation centered on custom processors—Graviton CPUs and Trainium AI accelerators—designed specifically for Amazon Web Services (AWS). The chip operation is already generating roughly $20 billion in annual revenue.

By designing its own processors, Amazon reduces dependence on third-party vendors, lowers operating costs, and optimizes performance for specific AI workloads. Graviton-based instances reportedly deliver better price-performance than comparable x86 alternatives for many cloud applications, while Trainium is positioned as a lower-cost option for training large AI models (a machine-learning process).

CEO Andy Jassy recently acknowledged the possibility of expanding external sales of Trainium processors beyond AWS's internal use, potentially placing Amazon into more direct competition with Nvidia and AMD. AWS generated $150 billion in annualized revenue during the first quarter of 2026.