Amazon's internal silicon business has crossed a $25 billion annual run rate, and CEO Andy Jassy indicated a 'real...

Amazon's internal silicon business has crossed a $25 billion annual run rate, and CEO Andy Jassy indicated a 'real chance' of selling Trainium chips outside AWS, according to a DigiTimes report dated 2026-08-01 (source). This marks a major escalation of Amazon's hyperscaler internal chip strategy, positioning AWS as not only a consumer but potentially a merchant supplier of AI accelerators, directly challenging NVIDIA's dominance and validating the broader trend of custom silicon among cloud providers.

Separately, Livemint's coverage of Big Tech earnings (source) notes that Amazon raised its capex target by $20 billion to $220 billion, and its shares rose more than 10%, contrasting with Alphabet's raise which was punished. This strong market reaction underscores investor confidence in Amazon's AI infrastructure spending translating to cloud revenue growth. The company's 10-Q (filed 2026-07-31) shows revenue of $323.4 billion and net income of $70.6 billion over trailing twelve months (SEC filing), providing scale context.

What the sources said

• DigiTimes headline: "AWS chip business passes US$25 billion run rate; CEO Jassy says there is 'real chance' of selling Trainium outside AWS" (source).

• Livemint: "Amazon raised its target by $20 billion to $220 billion, and its shares rose more than 10%." (source).