Andy Jassy says Amazon’s Nvidia competitor chip is already a multi-billion-dollar business

Amazon CEO Andy Jassy announced at the AWS Re:Invent conference that the company’s AI chip business, centered on its Nvidia competitor Trainium, is already a multi-billion-dollar revenue run-rate enterprise. The current generation, Trainium2, boasts over one million chips in production and is used by more than 100,000 companies, powering the majority of usage on Amazon’s AI app development platform, Bedrock. Jassy emphasized that Trainium2 offers compelling price-performance advantages over other GPUs, making it a popular choice among AWS’s extensive cloud customer base. A significant portion of Trainium2’s revenue comes from Anthropic, a key AWS partner using over 500,000 Trainium2 chips in Project Rainier, Amazon’s large-scale AI server cluster designed to support Anthropic’s advanced model training needs. While other major AI players like OpenAI also use AWS, they primarily rely on Nvidia chips, underscoring the challenge of competing with Nvidia’s entrenched GPU technology and proprietary CUDA software