"Jassy's cost argument is backed by real numbers. Trainium2 delivers 30 to 40% better price performance than comparable GPUs. Amazon's combined Graviton and Trainium chips business is now over $10 billion in annual revenue run rate, growing triple-digit percentages year over year."
"Trainium3 is already delivering production workloads, with nearly all supply expected to be committed by mid-2026. Trainium4 is on track for 2027 with 6x FP4 compute performance and 4x more memory bandwidth versus Trainium3."
"Cramer's source, Semianalysis CEO Dylan Patel, argues you need Nvidia for inference, not just training, specifically because of Groq. That's a fair technical point. But Amazon isn't abandoning Nvidia either."
"Amazon is running both tracks simultaneously, which is exactly what a rational hyperscaler should do."
Amazon's CEO Andy Jassy is focusing on custom silicon, achieving over $10 billion in annual revenue with Trainium chips, which outperform Nvidia's GPUs in price performance. Trainium3 is already in production, with Trainium4 expected to enhance performance further. Despite Jim Cramer's concerns about Nvidia's role in inference, Amazon continues to utilize Nvidia's GPUs, securing a deal for 1 million units. This dual approach allows Amazon to optimize its infrastructure while maintaining competitive capabilities in AI.
Read at 24/7 Wall St.
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