Amazon custom chips $20B annual run rate

Amazon said on May 1 that its custom chips business had exceeded a $20 billion annual revenue run rate, giving investors a new measure of how large the company’s in-house silicon effort has become inside Amazon Web Services. The disclosure appeared in Amazon’s first-quarter earnings materials and in follow-up commentary from Chief Executive Andy Jassy. Amazon said the chips business includes Graviton, Trainium and Nitro, and that it is growing at triple-digit percentages year over year. AWS, Amazon’s cloud division, reported first-quarter sales of $37.6 billion, up 28% from a year earlier. ### What exactly did Amazon disclose? Amazon’s May 1 first-quarter earnings release said its chips business had “exceeded $20 billion annual revenue run rate” and identified the business as inclusive of Graviton, Trainium and Nitro. The same release said AWS sales rose 28% year over year to $37.6 billion. Andy Jassy said in Amazon commentary published after the quarter that the chips business “continues to grow rapidly,” with nearly 40% quarter-over-quarter growth in the first quarter and an annual revenue run rate “now over $20 billion.” Jassy also said the business was growing triple-digit percentages year over year. (ir.aboutamazon.com) ### Which chips are included in that number? Amazon named Graviton, Trainium and Nitro in the first-quarter disclosure. Graviton is Amazon’s Arm-based server processor line for general cloud workloads, while Trainium is the company’s artificial-intelligence training chip. Nitro is Amazon’s networking and virtualization offload system used in its Elastic Compute Cloud infrastructure, according to AWS and Amazon materials. (aboutamazon.com) AWS said on its silicon innovation page that it has spent years designing custom silicon for cloud infrastructure, including processors, machine-learning chips and storage-related products. Amazon’s recent explainer on its chip lineup said CPUs such as Graviton are aimed at general computing tasks, while accelerators such as Trainium are used for AI training. (ir.aboutamazon.com) ### How fast has the chips business grown from the prior quarter? Amazon said on February 5, when it reported fourth-quarter 2025 results, that Trainium and Graviton had a combined annual revenue run rate of more than $10 billion. In that disclosure, Jassy said the two chip families were growing at a triple-digit percentage year-over-year rate. (aws.amazon.com) The May 1 update put the broader chips business — now explicitly including Nitro as well as Graviton and Trainium — above a $20 billion annual revenue run rate. Jassy said the business grew nearly 40% quarter over quarter in the first quarter. Amazon did not, in the materials reviewed, break out standalone quarterly revenue for each chip family. (ir.aboutamazon.com) ### Did Amazon tie the chip figure to a larger AI spending plan? Amazon’s first-quarter earnings release did not cite a $200 billion investment timeframe in the chip disclosure itself. The verified company materials reviewed for this story tied the chip update to AWS growth and to Amazon’s broader AI buildout, but the specific $200 billion figure in investor commentary has circulated mainly through secondary reports and social-media posts rather than the May 1 earnings release. (aboutamazon.com) Amazon’s AWS materials separately said the company’s AI revenue run rate was over $15 billion. Jassy said customers were choosing AWS for AI for several reasons, including what he described as lower cost and better price-performance from Amazon’s own chips. That explanation came in company commentary, not in a separate capital-expenditure filing tied to the chip number. (ir.aboutamazon.com) ### Why does Nitro matter in this disclosure? Nitro’s inclusion widens the scope of what Amazon is counting as its chips business. Amazon’s February disclosure referred to Trainium and Graviton together at more than $10 billion, while the May disclosure referred to a chips business inclusive of Graviton, Trainium and Nitro at more than $20 billion. (aboutamazon.com) Jassy said in his follow-up remarks that if Amazon’s chips business were treated as a stand-alone company and sold chips produced this year to AWS and outside customers “as other leading chips companies do,” the annual run rate would be about $50 billion. That comparison was Jassy’s framing of internal consumption and external sales, not a separate reported revenue line in Amazon’s financial statements. (ir.aboutamazon.com) Amazon’s investor relations site lists first-quarter 2026 earnings materials, including the release, webcast presentation and Form 10-Q, on its quarterly results page. Amazon’s next quarterly update is expected to appear there, where investors will be able to check whether AWS growth and the chip business run rate continue to be disclosed. (ir.aboutamazon.com) (aboutamazon.com)