Amazon announced on October 31, 2026, that it is expanding development of custom AI chips in response to strong internal demand for its processors. Its chip business, which includes Trainium and Graviton processors, is growing at a triple-digit percentage pace year over year. Revenue commitments have increased more than 20 times.
The expansion reflects Amazon’s strategy to integrate more of its technology and manage the high costs of AI infrastructure. Investors are scrutinizing heavy AI spending across the tech sector, which recently contributed to a sell-off in Amazon stock.
CEO Andy Jassy said Amazon plans to begin selling Trainium chips directly to external customers in late 2027, positioning the company to compete with other chip designers.