Amazon Could be On the Cusp of Reshaping the Artificial Intelligence (AI) Chip Market. Should Nvidia Investors be Worried?

Published July 6, 2026 · Category: Finance

Overview

Four years ago, Amazon (NASDAQ: AMZN) started using its own Trainium AI chips in its cloud infrastructure platform, Amazon Web Services (AWS). Those first-party chips became even more powerful with the launches of the Trainium2 in 2024 and Trainium3 in 2025. That expansion indicated that Amazon wanted to reduce its dependence on Nvidia (NASDAQ: NVDA), which still provides the majority of its data center GPUs.

Several of Nvidia's other top customers -- including Microsoft (NASDAQ: MSFT), Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, and Meta -- also produced their own AI chips for the same reason. Google and Microsoft even plan to sell their own chips to third-party customers that want to break free from Nvidia's sticky ecosystem.

Image source: Getty Images.

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Originally published at www.fool.com.

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