tech
December 6, 2025
Andy Jassy says Amazon's Nvidia competitor chip is already a multibillion-dollar business
Can any company, big or small, really topple Nvidia's AI chip dominance? Maybe not entirely, but Amazon is already making big bucks trying.
TL;DR
- Amazon's Trainium AI chip aims to compete with Nvidia, with CEO Andy Jassy highlighting the potential for hundreds of billions in revenue.
- The next generation Trainium3 chip is 4x faster and uses less power than Trainium2.
- Trainium2 has achieved multi-billion dollar revenue, with over 1 million chips in production and 100,000 companies using it.
- Amazon's AI app development tool, Bedrock, is a key platform for Trainium usage.
- Anthropic is a major customer for Trainium2, using over 500,000 chips for their Claude models through Amazon's Project Rainier AI cluster.
- OpenAI is also using AWS but primarily with Nvidia chips, not contributing significantly to Trainium revenue.
- True competition with Nvidia requires significant engineering capabilities, including silicon design and high-speed interconnects.
- Nvidia's CUDA software presents a barrier for non-CUDA chip adoption.
- Amazon's Trainium4 is designed to interoperate with Nvidia GPUs, a strategy whose long-term impact is yet to be determined.
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