Amazon May Sell Proprietary AI Chips to Firms to Tap Growing Market

Amazon.com, Inc. is thinking of peddling its chips to other businesses. On April 9th, CEO Andy Jassy announced that the cloud computing firm's in-house silicon operation is expected to generate over $20 billion in revenue for the year. The revelation provides an unprecedented look into the scope of Amazon's in-house chip operation, which manufactures AI accelerators, general-purpose computing chips, and efficiency enhancements for the company's servers.

Amazon Web Services, the company's cloud computing division, now rents out that gear to its customers. Companies are searching for alternatives to Nvidia Corp.'s market-leading graphics processing units due to the demand for processors that can develop AI models, which has stretched supply.

Jassy Highlighted Current Demand of AI Chips

In his annual letter to shareholders, Jassy mentioned that owing to the high demand for Amazon's chips, the company may eventually sell racks of them to other companies.

The CEO of Amazon, who assumed responsibility for the company nearly five years ago, stated that the chip business would generate an annual revenue of $50 billion. This will be possible only if it were an independent entity that supplies semiconductors to AWS customers and other third parties. Additionally, Jassy lauded Amazon's $4 billion initiative to provide lightning-fast shipping to customers in rural America.

Amazon Rejects Reports of 14,000 Layoffs

Various media outlets reported that Amazon was planning to lay off 14,000 workers in May, but the company has refuted the rumours. After cutting off 16,000 workers in January, a story went viral on April 8th saying that the corporation is about to lay off even more people. As a result of the most recent round of layoffs, fourteen thousand people will be out of work.

Lei Feng, a tech portal in Chinese, picked up the story when it appeared on the job board Blind. The report asserted that an insider had revealed the impending layoffs as part of extensive organisational changes. The insider went on to say that the firm is very secretive regarding this matter.

In a note to employees dated June 20, 2025, the company's chief executive officer, Andy Jassy, asserted that the company's operations are becoming increasingly integrated with AI. So, by incorporating AI, Amazon will be able to execute some tasks with fewer employees. Tech companies have been seeing enormous layoffs recently, and Amazon is only one of them. Approximately 30,000 workers were let go by Oracle in a recent 6 a.m. email. Oracle dismissed 30,000 people, with 12,000 of them being Indian.