Amazon Eyes External AI Chip Sales as Potential $50B+ Opportunity

The latest development centers on Amazon exploring external sales of its Trainium and Inferentia AI chips, potentially creating a stand-alone business with $50 billion annual run rate. This follows the $1 billion Forward Deployed Engineering launch in late June and expansions of Alexa+ across Canada and Brazil. Earlier milestones include Prime Day AI shopping features, 170% sequential Bedrock spending growth, and reports of custom on-device chips for Echo and Fire TV. Internal documents also flagged the Moonraker Alexa project as carrying over $100 million in 2026 GPU costs, highlighting execution pressures amid heavy AI investment.