While everyone’s been fighting over Nvidia’s expensive GPUs, Amazon quietly built its own AI chip empire — and just crossed $10 billion in annual revenue from it.
AWS still owns 32% of the global cloud market, staying well ahead of Azure’s 22% and nearly triple Google Cloud’s 12%. But the real story isn’t market share. It’s what Amazon’s doing under the hood: Trainium3 and Inferentia2, their custom AI chips that let customers train models at a fraction of the cost of using Nvidia hardware.
That $10 billion annual run rate from custom chips is no accident. It’s Amazon solving the AI infrastructure problem everyone else is still throwing money at. Lower costs, better margins, less reliance on external suppliers — this is how you win the long game in AI.
And don’t forget: Amazon’s core e-commerce business still commands 40% of the U.S. market. They’re not betting the farm on AI. They’re adding rocket fuel to an already dominant engine.
Billionaire Ken Griffin’s Citadel holds over $3.2 billion in Amazon stock — ranked #2 in his top 10. When one of the sharpest hedge fund minds on the planet goes that heavy on a name, you pay attention.
