Amazon Web Services (AWS) is discussing a plan to sell its in-house AI chip, Trainium, to other companies, TechCrunch reported on June 18, citing Bloomberg News.

Peter DeSantis, Amazon's AI chief, told Bloomberg News that it is in early-stage talks to sell Trainium chips for data centers to other companies. He did not specify which companies.

In early April, Amazon CEO Andy Jassy said in an annual letter to shareholders that demand for the company's AI chips is very high and it is considering selling them. "If the chip business, as an independent business, sells the chips it produces this year to AWS and external companies, annual revenue would reach about $50 billion," he said. "Demand is so strong that the likelihood of selling chips to external companies going forward is high," he said.

The $50 billion in revenue mentioned by Jassy is far short of Nvidia, but it matches Intel's annual revenue, drawing attention.

AWS has so far refrained from selling its AI chips externally for several reasons.

The biggest reason is that it can generate additional revenue through the chips. AWS not only charges for the AI tokens processed by the chips, but also sells various services needed to run AI apps, including storage, security, networking and monitoring.

Supply shortages are also a factor. Trainium chips are selling faster than they are produced. If AWS sells Trainium chips to external companies, the wait time for existing AWS customers could lengthen.