Amazon Stock Plummets Post-Earnings, Spooking Investors
Amazon’s custom silicon business experienced significant growth in the fourth quarter. The company announced that its Trainium chips and Graviton processors have reached an impressive annual run rate exceeding $10 billion. This represents a remarkable triple-digit percentage increase compared to the previous year.
Amazon’s Trainium Chips Gain Traction
Amazon revealed that its second generation of Trainium chips is currently “fully subscribed” with 1.4 million chips now in use. These chips are powering the majority of inference workloads on Bedrock, Amazon’s platform for developing artificial intelligence applications.
Future Developments in Custom Silicon
Looking ahead, Amazon anticipates that the latest generation of Trainium chips, known as Trainium3, will be fully committed by mid-2024. Furthermore, the company plans to launch Trainium4 in 2027, indicating a strong commitment to its custom silicon initiative.
- Trainium and Graviton processors surpass $10 billion annual run rate.
- Triple-digit percentage growth year-over-year.
- 1.4 million second-generation Trainium chips committed.
- Trainium3 expected to be fully subscribed by mid-2024.
- Trainium4 planned for launch in 2027.
These advancements in Amazon’s semiconductor technology reflect the company’s ongoing investment in AI and custom hardware, paving the way for further innovations in the tech landscape.
