Amazon Enters AI Chip Race, Targets Nvidia's Dominance With Plans to Sell Custom Chips to Outside Companies

Jun 19, 2026
Bloomberg.com
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Summary

Amazon is entering the AI chip market as a seller, with its AI chief confirming talks to supply custom Trainium3 chips to outside companies, directly challenging Nvidia's dominance in the booming AI infrastructure space.

Key Points

  • Amazon is in talks to sell its custom-made AI chips to other companies for use in their data centers, marking a significant push to compete with Nvidia's dominance in the AI chip market.
  • Peter DeSantis, Amazon's AI chief, confirms that discussions with potential customers have begun, though no names have been disclosed.
  • The move represents a major expansion strategy for Amazon, leveraging its Trainium3 chip to challenge Nvidia's stronghold in the rapidly growing AI infrastructure space.

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