Amazon AI Chip Business Hits $25 B, Pressuring Nvidia's Market Lead

Amazon AWS Nvidia AI chips Trainium data‑center revenue

Amazon Web Services announced that its custom AI chip division is generating roughly $25 billion in annual revenue, with the AWS segment growing 28 % in the first quarter of 2026. The company has deployed more than 1.4 million Trainium chips for inference on its Bedrock service. Trainium 3, now in mass production, is 30‑40 % more cost‑efficient than its predecessor, and Trainium 4, slated for deployment between late 2026 and early 2027, will deliver three times the processing capacity.

These developments position Amazon as a growing rival to Nvidia in the AI infrastructure market. Nvidia reported $81.62 billion in revenue for the first quarter of 2027, a rise of 85.2 % year‑over‑year, driven by data‑center sales that reached $75.246 billion, up 92 % YoY. Nvidia’s non‑GAAP gross margin stood at 75 % in the same period, and its CUDA software ecosystem continues to underpin its market dominance. While Amazon plans to sell Trainium server racks to external data centers and will still use over a million Nvidia GPUs from 2026 onward, the competition highlights a shift in the AI chip landscape.

Entities

AWS · AWS (Amazon Web Services) · Amazon.com Inc. · Andy Jassy · Anthropic · Nvidia Corp. · Trainium

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Nvidia's data‑center revenue reached $75.246 billion, up 92 % YoY. www.brasilemfolhas.com.br
[○ 1 SOURCE] Amazon plans to ship Trainium 4 with three times the processing capacity by late 2026 or early 2027. www.brasilemfolhas.com.br
[● 4 SOURCES] Amazon's AWS chip business generated about $25 billion in annual revenue. www.brasilemfolhas.com.br · www.descopera.ro · www.go4it.ro · www.national.ro
[○ 1 SOURCE] More than 1.4 million Trainium chips have been deployed for inference on Bedrock. www.brasilemfolhas.com.br
[○ 1 SOURCE] Nvidia reported $81.62 billion in revenue for the first quarter of 2027, an 85.2 % YoY increase. www.brasilemfolhas.com.br
[○ 1 SOURCE] Nvidia's non‑GAAP gross margin was 75 % in the first quarter of fiscal 2027. www.brasilemfolhas.com.br
[○ 1 SOURCE] Trainium 3 is 30‑40 % more cost‑efficient than the previous version. www.brasilemfolhas.com.br
[○ 1 SOURCE] AWS grew 28 % in the first quarter of 2026. www.brasilemfolhas.com.br
[○ 1 SOURCE] Trainium 4 will have three times the processing capacity and is planned for deployment between late 2026 and early 2027. www.brasilemfolhas.com.br