How much faster or cheaper is Trainium compared to Nvidia's chips?

Trainium2 offers 30% better price performance than comparable GPUs, according to Amazon. This cost advantage is one of the reasons Amazon developed the chips and plans to offer them to external customers.

Will Amazon stop using Nvidia chips?

No. Amazon's CEO stated during the company's first-quarter earnings call that Amazon continues to have a deep partnership with Nvidia, will order substantial quantities, and will be partners 'for as long as I can foresee,' even as Trainium becomes the largest number of AI chips Amazon brings in.

How fast is Amazon's AI chip business growing?

Amazon's AI chip unit is growing at triple-digit year-over-year rates, much faster than the rest of the business, and has an annual run rate of $50 billion（約8兆円）.

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Amazon is beginning to sell its Trainium AI chips to external customers, presenting a new competitive challenge to Nvidia even as both companies are expected to thrive in the growing AI market.

Yahoo Finance AI7h ago5 min read

Key takeaway

Amazon is moving to sell its custom-designed Trainium AI chips to external customers, breaking from its previous practice of using them only internally. This expands Amazon's AI business, which is growing at triple-digit annual rates and could offer other companies a more cost-effective alternative to Nvidia's chips. However, Amazon continues to be a major Nvidia customer, and analysts suggest both companies can succeed as the AI industry grows and supports multiple competitors.

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3 Key Points

What happened
Amazon is in early talks to sell its Trainium AI chips to external customers beyond its own cloud operations. The company's AI chip unit has an annual run rate of $50 billion（約8兆円） and is growing at triple-digit year-over-year rates, according to Amazon.
Why it matters
Amazon designed Trainium to reduce its dependence on Nvidia and cut costs—Trainium2 offers 30% better price performance than comparable GPUs. By selling these chips externally, Amazon could capture additional revenue while other large cloud providers and enterprises gain access to a cost-effective alternative to Nvidia's dominant hardware.
What to watch
Despite building its own chips, Amazon remains a major Nvidia customer and has stated it will continue ordering substantial quantities and partnering with Nvidia long-term. Nvidia is also pursuing new growth through agentic AI (AI agents running on CPUs), estimating $20 billion（約3.2兆円） in stand-alone CPU revenue by the end of the year.

FAQ

How much faster or cheaper is Trainium compared to Nvidia's chips?: Trainium2 offers 30% better price performance than comparable GPUs, according to Amazon. This cost advantage is one of the reasons Amazon developed the chips and plans to offer them to external customers.
Will Amazon stop using Nvidia chips?: No. Amazon's CEO stated during the company's first-quarter earnings call that Amazon continues to have a deep partnership with Nvidia, will order substantial quantities, and will be partners 'for as long as I can foresee,' even as Trainium becomes the largest number of AI chips Amazon brings in.
How fast is Amazon's AI chip business growing?: Amazon's AI chip unit is growing at triple-digit year-over-year rates, much faster than the rest of the business, and has an annual run rate of $50 billion（約8兆円）.

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