Forget AMD: Amazon Declares War on Nvidia by Selling Its Own AI Chips

247wallst.com Jun 20, 2026

Forget AMD: Amazon Declares War on Nvidia by Selling Its Own AI Chips

Curated by Shubham · TechCapsules · Jun 20, 2026

AI-summarised brief · reviewed before publication

Amazon is exploring the possibility of selling its custom-designed AI chips to third parties, expanding beyond their current role inside Amazon Web Services. The company has spent years developing its Trainium and Inferentia processors to reduce reliance on third-party suppliers while lowering AI computing costs for customers. Amazon's internal chip business now generates revenue approaching $50 billion on an annualized basis, making it larger than companies like Advanced Micro Devices. This move could potentially disrupt Nvidia's dominance in the AI chip market. Amazon's decision is significant as cloud providers are on pace to spend over $750 billion on AI infrastructure this year.

💡 Why It Matters

· Amazon's potential entry into the AI chip market threatens Nvidia's grip on the industry.
· By selling its custom processors, Amazon can further reduce its reliance on external suppliers and increase its control over the AI infrastructure market.

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Amazon Walks Away from Nearly Complete Sam Altman Movie Just Months After…

Amazon has walked away from Artificial, a nearly complete biopic about OpenAI CEO Sam Altman, just months after investing $50 billion in the company. The decision, made by Prime Video head Mike Hopkins, follows positive reactions to the movie from private test screenings. Directed by Luca Guadagnino, the film stars Andrew Garfield as Altman and features a cast that includes Ike Barinholtz as Elon Musk. Amazon is working with the film's team to find a new distributor, with the movie's release now uncertain.

💡 The sudden departure of Amazon from the movie raises questions about the company's commitment to its investment in OpenAI. The decision may also indicate a shift in Amazon's priorities, potentially reflecting a growing unease with the controversy surrounding Altman's tenure at OpenAI.

247wallst.com · Jun 20

Amazon’s CEO: AI Growth Is Dwarfing Everything We’ve Seen Before.

Amazon CEO Andy Jassy stated that AI's adoption speed has no precedent, with AWS's AI revenue run rate exceeding $15 billion, 260 times larger than AWS's revenue three years after launch. Jassy attributed this growth to the company's custom silicon and Bedrock software, which saw 170% growth in customer spend quarter over quarter. AWS revenue reached $37.59 billion, up 28% year over year, with a $150 billion annualized run rate. The company's capital expenditures increased by 77% year over year, reaching $44.20 billion in Q1. Jassy remains optimistic about Amazon's position in the AI market, citing signed customer commitments.

💡 Amazon's AI growth threatens to upend traditional cloud workloads, and its custom silicon and software offerings are driving this transformation. The company's ability to maintain its operating margin despite heavy infrastructure costs will be crucial to its success.

spectrum.ieee.org · Jun 19

What Amazon’s Astro Taught Me About Giving Robots a Soul

Amazon's Astro, a consumer home robot, was developed with a unique character direction, distinct from Alexa. The UX team, led by the UX Sound Designer, argued that a mobile robot required its own character to avoid being seen as just an appliance. User testing confirmed this decision, with users perceiving Astro as its own character. The robot's sound design language and voice were defined, with Alexa serving as a supporting character for spoken interactions. The development of Astro's character involved answering design questions about its emotional range, communication, and vulnerabilities. Astro's character was designed to be expressive, yet not annoying, with a focus on creating a cohesive user experience.

💡 By giving Astro its own character, Amazon created a more relatable and engaging user experience, setting a precedent for embodied AI development. Effective character design enables robots to communicate uncertainty and emotions without eroding trust.

cnbc.com · Jun 18

Amazon AI exec predicts first ‘commercially useful’ quantum computers in 5-7 years

Amazon AI executive Peter DeSantis predicts the first commercially useful small-scale quantum computers will be available in five-to-seven years. DeSantis leads a new Amazon organization focused on AI models, chips, and quantum computing. Quantum computing proponents claim the technology will solve problems current computers cannot. DeSantis' prediction suggests significant advancements in the field. The technology is expected to grow similarly to semiconductor capabilities. Amazon's investment in quantum computing indicates a strong commitment to the technology's potential. DeSantis' statement highlights the progress being made in quantum computing research and development, with potential applications emerging soon.

💡 Quantum computers will unlock solutions to complex problems, revolutionizing industries that rely on complex calculations. Breakthroughs in fields like medicine and finance will be driven by quantum computing's ability to process vast amounts of data quickly.

space.com · Jun 17

Watch European rocket launch record-breaking mission for Amazon on June 17

A European Ariane 6 rocket is set to launch a record-breaking 36 Amazon Leo satellites to orbit from French Guiana on June 17. The mission will be the 14th Amazon Leo launch and the third performed by an Ariane 6, breaking new ground with the heaviest payload ever launched by the Ariane launcher. The Ariane 6 will deploy the satellites about 289 miles above Earth, with all 36 expected to be flying freely by one hour and 51 minutes after liftoff.

💡 Amazon's growing satellite constellation, Amazon Leo, is dwarfed by SpaceX's Starlink, but this launch marks a significant milestone in the company's efforts to expand its broadband network in low Earth orbit. The success of this mission will further demonstrate the capabilities of the Ariane 6 rocket and its potential to support large satellite constellations.

windowscentral.com · Jun 17

Rampant AI‑driven GitHub outages force Microsoft into an unlikely alliance — Amazon…

Microsoft has turned to Amazon Web Services for extra computing power after a string of AI-related outages on GitHub, the platform it acquired for $7.5 billion in 2018. The outages have strained GitHub's compute resources, which have been overwhelmed by a surge in development activity driven by the increasing use of AI to write code faster. GitHub's own blog has detailed how the service has failed to meet its own service level agreements, with an uptime of 90.21% below the stated 99.9%. Microsoft is accelerating its move to Azure and exploring a multi-cloud strategy to meet the demand.

💡 The partnership with Amazon highlights the limitations of Microsoft's infrastructure in supporting the rapid growth of GitHub, and raises questions about the company's ability to manage its AI-driven platforms.