Amazon plans to sell its AI chips to other companies in 2027

Amazon says it plans to start selling its own AI chips to other companies in 2027, with CEO Andy Jassy setting a public timetable. AI chips are processors designed to speed up artificial-intelligence computing.^[1]

This remains a future sales plan. The report says it could attract customers away from NVIDIA, while the commercial terms remain unclear.^[1]

If Amazon starts sales as planned, it can earn revenue from external chip buyers, who gain another product to compare with existing suppliers' offerings. A competitive product that customers can adopt could redirect some AI-computing spending toward Amazon, increasing pressure on suppliers such as NVIDIA to win orders.^[1]

The effect depends on purchase prices, operating performance and the cost and work of adapting customers' software. Another purchasing option could help buyers lower total computing costs, but the disclosed information does not establish the savings or the scale of any shift in orders.^[1]

Impact

• AI chip suppliersRisk

  Incumbents such as NVIDIA may have to compete with Amazon in customers' purchasing decisions. Attractive products and terms could cost rivals some orders while opening a new source of chip-sales revenue for Amazon.^[1]

• AI-computing infrastructure buyersOpportunity

  Businesses buying AI-computing equipment could gain another supplier and more room to negotiate. Whether adoption pays off will depend on chip prices, performance and software-adaptation costs.^[1]

What to watch next

• The planned 2027 sales start: whether Amazon begins selling to other companies on schedule, and the terms it offers, will show whether the new purchasing option can become meaningful competition.^[1]