Amazon in Talks to Sell Trainium AI Chips Directly to External Data Centers, Moving Beyond AWS Cloud Model to Challenge Nvidia

Amazon is in active negotiations to sell its Trainium3 AI processors directly to outside companies for use in their own data centers, transforming from a cloud-only chip vendor into a direct hardware competitor to Nvidia. Amazon's chip division has reached a $20B annual revenue run rate; Trainium3 delivers four times the performance of Trainium2 at roughly half the cost of conventional GPUs and has been nearly at capacity since its late-2025 launch. If confirmed, this would mark the first time Amazon sells proprietary AI accelerator hardware outside of AWS, mimicking Nvidia's core hardware business model at a time when Trainium commitments from OpenAI and Anthropic alone have reached $225B.