Amazon Eyes Direct Nvidia Challenge With Trainium Sales

Amazon Web Services is in early talks to sell its Trainium AI chips directly to other companies for use in data centers, marking a potential major challenge to Nvidia's dominance. CEO Andy Jassy estimated a standalone chips business could generate a $50 billion annual run rate. However, AWS faces significant hurdles, including already sold-out chip capacity and the risk of cannibalizing its lucrative cloud services revenue. The move would also require competing with Nvidia for manufacturing capacity at TSMC, where Nvidia is currently the foundry's largest customer.