Amazon to Make Trainium AI Chips Available Outside AWS by End-2027, Jassy Says

Amazon plans to make its in-house Trainium AI chips available outside its AWS cloud by the end of 2027, CEO Andy Jassy said on a Thursday third-quarter earnings call, as customers press for access beyond Amazon's own environment. Jassy did not disclose deal structure, partners, volumes or pricing, and the plan does not confirm Amazon will sell chips directly. Trainium is currently rented through AWS instances rather than sold. A hardware-sales model would require Amazon to absorb manufacturing, assembly, inventory and delivery costs, while a partner-cloud model raises questions over who owns and deploys hardware and how Amazon is paid. Each option carries different implications for revenue recognition, capital spending and margins. AWS posted third-quarter revenue of $45.98 billion, up 39.3%, with a backlog of $578 billion. Amazon said its AI cloud and chip businesses each exceed $25 billion in annualized revenue and are growing at triple-digit rates. Amazon reported trailing-12-month free cash flow of negative $42.36 billion, versus an inflow of $14.79 billion a year earlier, with 2026 capital expenditure expected near $220 billion and 2027 spending "significantly higher."