Amazon plans to offer Trainium to customers beyond its own operations as cloud firms build in-house processors, while Alphabet says demand for its TPUs spans nearly 100 customers and expects TPU revenue growth in 2027.
Amazon said its custom-chip business now runs at a $25 billion annualized revenue rate. Revenue from its chips grew by a triple-digit percentage year over year, while commitments for Graviton and Trainium each climbed to more than 20 times earlier levels.
Alphabet says demand for its TPUs spans nearly 100 customers. The company has announced partnerships with Oracle and Crux AI, and expects TPU revenue to rise substantially in 2027. Amazon’s reported figures describe a current revenue pace and higher commitments; Alphabet’s include customer demand and a future revenue outlook.
EconoTimes previously reported that Amazon’s AI and chip businesses each had surpassed a $25 billion annual pace in its coverage of AWS capacity and AI demand.
The companies face different timelines for earning from their chips. Direct chip sales may produce revenue earlier; deploying the processors through cloud services can yield more revenue and free cash flow over a five- to six-year period. Amazon says it weighs direct sales against cloud use differently from Alphabet.
Nvidia GPUs remain widely used at both Amazon and Alphabet even as they develop their own processors.
