Triple-digit growth in the chip business
Amazon's custom-designed chips continued to grow more than 100% year over year, according to figures shared after the third-quarter results. The company attributes the growth to rising customer interest in the specialized hardware it offers through AWS.
Graviton and Trainium commitments up 20x
According to the announcement, revenue commitments for both Graviton, its general-purpose server processor, and Trainium, its chip built for AI training, increased more than 20x compared with last year. These commitments reflect the spending customers have pre-committed to using these chips.
Jassy: Why demand is growing
CEO Andy Jassy assessed the reasons behind the rising demand. Amazon uses these chips in its own data centers and also offers them to AWS customers as a cloud service, letting the company earn revenue on both the hardware and cloud sides.
What it means
Graviton is a processor family designed to run general-purpose workloads more efficiently. Trainium is a specialized chip aimed at training AI models. Amazon's growth in this area shows that cloud giants' efforts to reduce dependence on NVIDIA are producing concrete results.
