Q3 Earnings: Andy Jassy on why demand for Amazon’s custom chips keeps growing

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Amazon’s chips business continues to grow triple-digit percentages year over year, and revenue commitments for Graviton and Trainium have each increased more than 20x year over year.

Written by Amazon Staff

Our Chips business continues to grow triple digit percentages year over year, and revenue commitments for Graviton and Trainium have each increased more than 20x year over year. AI continues to be a tailwind for Graviton because post-training, reinforcement learning, and agent tool use is mostly done on CPUs vs AI accelerators, and Graviton is the strongest CPU chip, offering up to 30-40% better price-performance than alternatives.

Customers using our custom silicon saved more than $2 billion in Q3 alone, and we just open-sourced TorchNeuron so developers can run existing PyTorch code (which most already use) on Trainium without rewriting a thing.

As we launch new generations of chips, demand for prior generations remains strong. After our launch of Graviton 5, backlog for prior-generation Graviton instances still more than doubled quarter over quarter. And short-term capacity for prior generation Trainium instances sell at a premium compared to first half of the year.

With Trainium demand so strong, customers continue encouraging us to make it available outside of AWS. We intend to do so late in 2027.

Overall demand for AWS capacity remains exceptionally strong. Enterprises are still very early in using inference at scale, and yet inference already accounts for well over half of AWS’s AI revenue and growing—and we have a lot of training revenue as well.

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