Amazon and Google push custom chips: what their executives said about the future
According to Seeking Alpha, Google sells TPUs to outside clients while Amazon plans external Trainium sales from late 2027. Here is what top executives said.
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what happened
Amazon and Alphabet report strong internal demand for their custom chips amid a surge in spending on artificial intelligence. Both companies still rely heavily on Nvidia for GPUs, yet both want to earn revenue from their chips beyond their own services, Seeking Alpha reports.
Alphabet began selling its tensor processing units (TPUs) to outside customers earlier this year. CEO Sundar Pichai called demand for TPUs 'strong' and said nearly 100 customers already use them, including Meta, Apple and Citadel Securities. CFO Anat Ashkenazi expects a 'meaningful revenue ramp in 2027', though the company did not disclose specific TPU financials.
Amazon said its custom chip business, which includes Graviton and Trainium, reached a $25 billion revenue run rate in July. This week the company said chip-related revenue is growing at a triple-digit percentage pace year over year, and revenue commitments for Graviton and Trainium have each risen more than 20 times. Amazon plans to start selling Trainium outside AWS in late 2027.
why it matters
Amazon CEO Andy Jassy explained that selling chips externally brings in revenue faster, while using them in the cloud generates more total revenue and free cash flow over the 5 to 6 years the hardware is in service. For investors, the choice between external sales and in-house cloud use is a strategic decision that shapes both segments.
market impact
Alphabet and Amazon: rising demand for in-house chips supports their cloud businesses and revenue expectations.
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- Amazon and Google both have custom chips. Here's what they said about their future. — Seeking Alpha, 31 October 2026 at 12:00 UTC
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