# Amazon plans Trainium AI chip sales outside AWS in 2027

> Markdown version of an Informer Tech article. Canonical HTML page: https://www.informertech.com/post/amazon-trainium-chip-sales-outside-aws-2027
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- **Canonical URL:** https://www.informertech.com/post/amazon-trainium-chip-sales-outside-aws-2027
- **Publisher:** Informer Tech (https://www.informertech.com/)
- **Category:** AI Industry News
- **Author:** Darya Mehrabi
- **Published:** 2026-10-30
- **Description:** Amazon plans to sell Trainium AI chips outside AWS in late 2027, balancing external sales with chip demand for its cloud services.

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Amazon intends to begin selling Trainium AI chips outside Amazon Web Services in late 2027. CEO Andy Jassy outlined the timing during the company's third-quarter earnings call on October 29, citing strong demand and requests from customers to make the chips available beyond AWS.

Trainium has so far remained within Amazon's cloud, where customers rent computing capacity powered by the chips. Selling them externally would bring Amazon into more direct competition with Nvidia and AMD, according to Chosun Biz.

## External Trainium sales are planned for late 2027

Customers have continued asking Amazon to offer Trainium outside AWS, Jassy said, according to [CNBC](https://www.cnbc.com/2026/10/29/aws-q3-earnings-report-2026.html). Amazon now has a planned sales window, although it has not announced pricing, buyers, or sales terms, FourWeekMBA reported.

The announcement follows earlier discussions about deploying Trainium in third-party data centers. In September, AWS AI chief Peter DeSantis said Amazon had been speaking with potential buyers about that possibility. Amazon characterized those discussions as preliminary at the time, according to Electronics For You.

Jassy had also raised the possibility of external chip sales in his shareholder letter earlier in the year.

## Amazon must divide limited chip supply between sales and AWS

Amazon's chip supply is limited, so the company must decide how much to sell to outside customers and how much to retain for its cloud services.

The two options generate revenue on different timelines. According to the [earnings call transcript](https://finance.yahoo.com/quote/AMZN.TO/earnings/AMZN.TO-Q3-2026-earnings_call-720308.html), Jassy said external sales allow Amazon to recognize revenue when chips leave inventory. Keeping chips in AWS to power EC2 instances or Bedrock can generate more revenue and free cash flow over five to six years of use.

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<td class="ql-table-cell" colspan="1" rowspan="1" data-row-id="2pf2sflzb5a" data-col-id="74ftux4n3i">
 

**Use of chip supply**

 

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**Revenue considerations described by Jassy**

 

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Sell chips externally

 

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Amazon can recognize revenue when the chips leave inventory.

 

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Keep chips in AWS

 

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Chips can produce more revenue and free cash flow over five to six years.

 

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Jassy expects both businesses to become substantial, despite the allocation decisions involved. Benzinga reported that he anticipates a significant business selling chips externally.

## Trainium already powers most of Bedrock

Most of Amazon's Bedrock service already runs on Trainium, Jassy said during the call. He cited the chips' price performance and the margins they provide as reasons Amazon favors using them.

Amazon's broader chip business continues to grow by triple-digit percentages year over year, according to Jassy. Revenue commitments for Graviton and Trainium have each increased more than 20-fold, the transcript stated.

CNBC noted that Amazon's planned expansion follows Google's move to make its tensor processing units available outside its own facilities.

## AWS growth accompanies heavy capital spending

Amazon announced its Trainium sales plans alongside AWS's fastest revenue growth in nearly five years. The company reported AWS revenue of $46.0 billion, an increase of 39%, and operating income of $17.8 billion.

Jassy projected AWS growth of more than 40% in both 2027 and 2028. Those projections accompanied Amazon's unchanged forecast of approximately $220 billion in capital spending for 2026.

Trailing-twelve-month free cash flow was negative $42.4 billion. Fortune reported that Amazon shares declined after the results as concerns about AI spending overshadowed the cloud business's growth.

AWS also announced plans during the quarter to purchase additional Nvidia GPUs, according to CNBC.

## FAQ

### When does Amazon plan to sell Trainium chips outside AWS?

Amazon plans to begin external Trainium chip sales in late 2027. It has not announced pricing, customers, or sales terms.

### How is Trainium currently available?

Customers currently access Trainium through rented computing capacity within AWS. Jassy also said that most of Bedrock already runs on Trainium.

### Why must Amazon balance external chip sales with cloud use?

Amazon has limited chip supply to allocate between the two businesses. External sales generate revenue sooner, while chips retained in AWS can produce more revenue and free cash flow over five to six years.