Headline: Amazon (AMZN) Plans External Sales of Trainium AI Chips, Challenges Nvidia (NVDA)

Amazon (AMZN) is in discussions with potential clients to directly sell its self-developed Trainium artificial intelligence chips for deployment in their data centers. This strategic move, reported on June 18, 2026, marks a significant expansion of Amazon's AI infrastructure business and intensifies its challenge to Nvidia's (NVDA) dominance in the AI chip market. Amazon shares rose 1.8% to $241.82 following the news. Amazon AI head Peter DeSantis confirmed the discussions, noting the rapid evolution of AI infrastructure. Trainium chips, launched in 2020, previously served clients like OpenAI, Anthropic, and Uber via Amazon Web Services (AWS) and have accumulated over $225 billion in revenue commitments. CEO Andy Jassy had indicated in April 2026 that direct sales of Trainium-powered server racks were "very likely." This initiative aims to reduce reliance on Nvidia GPUs and meet increasing demand for localized computing resources, especially in Europe, due to data sovereignty concerns. Other cloud providers, including Alphabet (GOOGL), are also promoting their custom AI chips. Amazon's third-generation Trainium chips are nearly sold out, with strong interest for the fourth generation due in 2027.