Amazon is moving to sell its own artificial-intelligence chips to outside customers, a step that would put the retail and cloud giant in direct competition with Nvidia, the dominant supplier of AI hardware.
According to a report cited by MSN, Amazon Web Services — the company's cloud-computing arm — has opened discussions with potential customers interested in using its custom "Trainium" chips. Data Center Dynamics, citing a report, says Amazon could sell those Trainium chips to data centers.
Until now, Amazon has primarily used its in-house silicon to power its own cloud services. Selling the chips more broadly would mark a shift toward competing as a merchant chip vendor rather than just a buyer of others' hardware. EE Times describes the move as Amazon's "newest gambit," framing it as the world's largest hyperscaler trying to "seize the semiconductor moment by selling AI accelerators at scale."
Several outlets cast the development in combative terms. Yahoo Finance and 24/7 Wall St. both ran the headline "Forget AMD: Amazon Declares War on Nvidia by Selling Its Own AI Chips," signaling that Amazon could become a more serious rival to Nvidia than chipmaker AMD.
The sources do not specify pricing, timelines, customer names, or production volumes, and the customer discussions are described as early-stage talks rather than finalized deals.
Why it matters: Nvidia's chips have become the default engine for building AI, giving the company enormous pricing power; a credible, lower-cost alternative from a company as large as Amazon could reshape who controls the costly hardware that the entire AI industry depends on.