Andy Jassy Says Amazon's Chip Business Already Has $225 Billion in Commitments
The maker of Trainium chips now runs one of the top three data center chip businesses in the world, according to its CEO.
Overview
Amazon (NASDAQ: AMZN) CEO Andy Jassy put a striking number on one of his company's least-discussed businesses this spring. If Amazon's in-house chip operation were a stand-alone company that sold the chips it produces to outside buyers, he said on the company's first-quarter earnings call in April, its annual revenue run rate would be about $50 billion.
The business as it actually runs today is no small thing either. Amazon's custom chip unit -- Graviton processors, Trainium artificial intelligence (AI) accelerators, and Nitro networking chips, all deployed inside Amazon Web Services (AWS) -- has an annual revenue run rate above $20 billion, growing at triple-digit percentage rates year over year.
Details
And customers have lined up. Jassy said in the company's first-quarter earnings call that it now holds more than $225 billion in revenue commitments for Trainium.
Source
Originally published at www.fool.com.