Investors know Amazon ( NASDAQ:AMZN | AMZN Price Prediction) for its dominance in e-commerce and cloud computing through AWS, and are likely familiar that it has pushed into chipmaking with its Trainium line that is designed for AI training and inference. Yet, their thoughts on its silicon efforts often don't go much beyond that and, in doing so, overlook the deeper significance it holds.
Amazon added 3.8 GW of power in the last 12 months, expects another >1 GW in Q4, and plans to double AWS power capacity again by 2027. Power is becoming the main bottleneck for the industry, but Amazon is aggressively adding and immediately monetizing capacity. Trainium2 is "fully subscribed," already a multibillion-dollar business, and grew 150% q/q. Today it's mostly very large customers (example: Anthropic training Claude on ~500,000 Trainium2 chips, going to ~1 million).