Google and Amazon Signal Plans to Sell AI Chips Directly

Google and Amazon, which had until now offered TPU and Trainium only internally within their clouds, announced they will sell them directly to external customers. Until now, customers used them by renting through each company's cloud, but Amazon suggested the possibility of supplying full racks of Trainium to customer data centers within the next few years, and Google said it will provide TPU to some customers' data centers starting this year. Google expects most of the related revenue to be booked in 2027.

Both companies are also major Nvidia customers, so their interests overlap. Even so, the trend of putting their own chips front and center is becoming more important amid pressure for cost reduction and supply diversification. Analysts assessed that while Nvidia's ecosystem remains strong, the expansion of in-house chips by customer companies is a trend that is difficult to reverse.

• Google has already signed a limited number of contracts for TPU supply.
• Morgan Stanley suggested that selling 500,000 TPUs could generate roughly $13 billion in additional revenue in 2027.
• Nvidia's stock price fell more than 4% following the news.