Amazon CEO Andy Jassy told investors that AWS customers will keep choosing Nvidia chips for the foreseeable future, even as Amazon's own custom silicon business grows past a $20 billion annual revenue run rate. The comments address what has become Nvidia's most discussed risk: that its biggest cloud customers are also building competing chips.
Nvidia has spent the past few years building the leading AI chip franchise, and its stock has climbed about 800% over five years. But investors have grown wary of one threat: Amazon, Google, Microsoft, and Meta have all poured resources into their own AI accelerators, and Nvidia shares are up about 14% this year.
Jassy's 15 words ease the competition fear
During Amazon's recent earnings call, Jassy addressed the concern directly. According to Fool: "We have customers who will run on Nvidia for as long as we can foresee". He added that AWS intends to remain the best place to run Nvidia chips, signaling that Amazon's custom silicon is meant to widen customer choice rather than push Nvidia out of AWS.
Amazon keeps scaling its own chips
Even so, Amazon isn't slowing its in-house silicon push. Its Graviton, Trainium, and Nitro chip lines have crossed an annual revenue run rate exceeding $20 billion, a figure that could reach $50 billion if Amazon ever sells the chips externally. In August 2026, Amazon agreed to buy an additional 2 million Nvidia GPUs for AWS data centers in the 2027-2028 window, on top of a prior 1 million-chip order, bringing its total pipeline to roughly 3 million GPUs.
Amazon's current-generation Trainium2 chip offers roughly 30% better price-performance than comparable GPUs and is nearly sold out. Its successor, Trainium3, launches in early 2026 promising 30-40% better performance and is already nearly fully subscribed.
Nvidia's numbers still lead the field
Nvidia's own results explain why the competition hasn't dented its business yet. Revenue surged 100% to more than $96 billion in its most recent quarter, with gross margin topping 70%. Demand for AI compute remains so high that Nvidia alone probably couldn't serve the entire market.
Sources: The Motley Fool, Crypto Briefing
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