Semiconductor · The Register
Amazon chips no longer just a side dish, they're a $20B biz
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Amazon is now among the top three datacenter chip businesses in the world, as its semiconductor business surpassed a $20 billion annual run rate. and it would be closer to $50 billion if it included itself among the customers, CEO Andy Jassy said during the company’s first quarter earnings call on Wednesday.
Key facts
- Jassy said in the first three years after AWS launched, it had a $58 million revenue run rate, while in the first three years of this AI wave, AWS' AI revenue run rate is over $15 billion
- nearly
- Amazon's overall net income for the quarter came in at $30.3 billion, or $2.78 per diluted share
- Overall, Amazon reported first-quarter revenue of $181.5 billion, up 17 percent year over year
- Amazon made OpenAI's GPT-5.4 model available in limited preview on Bedrock and announced that GPT-5.5 is coming soon
Summary
“If our chips business was a standalone business and sold chips produced this year to AWS and other third parties as other leading chip companies do, our annual revenue run rate would be $50 billion,” Jassy said. Amazon's rapidly expanding custom silicon business includes its Graviton processors, Trainium AI training chips, and Nitro security chips, and is growing at over 100 percent year over year, Jassy said. “The speed at which they've gotten here is extraordinary, and they have momentum for their custom AI silicon.