Amazon.com Inc. (NASDAQ:AMZN) CEO Andy Jassy revealed more insights on the next generation of the company’s AI chip, Trainium3, at the AWS re:Invent conference on Wednesday.
Four-Times Faster, Lower Power Chip
Trainium3, Amazon’s AI chip that competes with Nvidia Corp (NASDAQ:NVDA), is four times faster and consumes less power than its predecessor, Trainium2.
The CEO also took to X to share some details about the Trainium2, which he says is already “a multi-billion-dollar revenue run-rate business” with over a million chips in production and over 100,000 companies using it as their primary Bedrock usage. Bedrock is Amazon’s AI app development tool that allows companies to select from various AI models.
“Trainium3 will deliver at least 4.4x more compute performance, 4x greater energy efficiency, and almost 4x more memory bandwidth than Trainium2,” wrote Jassy
Jassy credits Trainium2's momentum to its superior price-performance compared to other GPUs, saying it delivers better results at a lower cost—reflecting Amazon's broader strategy of pricing its in-house technology more competitively.
Additionally, Jassy spoke about Nova Forge, which lets companies train earlier versions of frontier models with their own proprietary data, creating customized "Novellas" tailored to their needs. He also mentioned that AWS expects autonomous agents to become the primary way businesses gain value from AI, adding tools like the Kiro agent, DevOps Agent, and Security Agent to its lineup.
Anthropic Key Revenue Contributor
Amazon’s AI push has been gaining momentum, with the Trainium2 chips playing a pivotal role. The Trainium2 chips were instrumental in the launch of Project Rainier, Amazon’s supercomputer, which went live in October. The new Rainier system positioned Amazon Web Services to capture a larger share of the booming AI training and inference demand, potentially adding billions in revenue growth through 2026.
AWS CEO Matt Garman told CRN that the company’s AI chip has been particularly successful with its cloud customers, with a significant portion of the billions in revenue coming from Anthropic, a startup backed by Amazon. Anthropic uses over 500,000 Trainium2 chips in Project Rainier.
Moreover, Amazon’s partnership with Nvidia has also been crucial to its AI chip success. At the AWS re:Invent, Amazon and Nvidia deepened their long-running AI partnership by integrating Nvidia’s accelerated compute technology with AWS’s custom silicon and global cloud infrastructure. This strategy aims to provide enterprises with faster, more efficient options for training and deploying advanced AI systems.
According to Benzinga Edge Stock Rankings, Amazon has a growth score of 90.60% and a momentum rating of 52.20%. Click here to see how it compares to other leading tech companies.
Price Target: On a year-to-date basis, Amazon stock climbed 4.04% as per data from Benzinga Pro. On Thursday, it fell 1.41% to close at $229.11.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
