According to information provided by Amazon and reported by Reuters, The chip business achieved an annual revenue run rate of more than $20 billion.
This means that At the current sales pace, this segment generates revenues of over USD 20 billion. on an annual basisalthough it is not reported as a separate line in the financial statements.
This is an important signal for the market: just a few years ago, Amazon's own processors were perceived mainly as a cost optimization tool in the AWS cloud. Today we are talking about a full-fledged, multi-billion business, as Reuters writes.
Foundation: cloud and artificial intelligence
Amazon remains a key buyer of chips Amazon Web Servicesthe world's largest cloud platform. As mentioned by Reuters, the company designs its own processors, including: down:
- general purpose computing,
- training and running artificial intelligence models,
- specialized tasks requiring high energy efficiency.
The growing demand for AI means that the need for such systems is growing rapidly, and Amazon – instead of relying solely on external suppliers – is increasingly using its own solutions.
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Amazon chips. Independence from external suppliers
The development of its own chips also has a strategic dimension for Amazon. The global semiconductor market remains tight, with access to cutting-edge chips sometimes limited.
As Reuters writes, by designing its own processors, Amazon:
- reduces dependence on the largest chip manufacturers,
- better controls infrastructure costs,
- can adapt solutions faster to the needs of its cloud customers.
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A new pillar in the Amazon empire
Revenue scale – over USD 20 billion per year — shows that chips are no longer just a technological support, but are becoming one of the important elements of the entire Amazon system, as Reuters writes.
