Amazon and Google both have custom chips. Here's what they said about their future.

What happened

Amazon and Alphabet saw strong internal demand for their custom chips while still depending heavily on Nvidia for GPUs. Alphabet began selling its tensor processing units externally in the middle of this year, and Amazon plans to sell Trainium chips externally in late 2027.

Confirmed

Global impact / market context

Selling chips externally opens a new revenue stream beyond internal use, which could add billions in sales. It also reduces reliance on Nvidia and lets the companies earn money from the same AI chip demand driving their own rising capital spending, which means spending on long-term assets.

Analyst inference

Demand for chips that run AI models is very high. Alphabet already counts Meta, Apple, and Citadel Securities among external users. If Amazon follows in late 2027, both could take share in the AI chip market now dominated by Nvidia, changing how investors value these companies.

Analyst inference

What to watch

1. Alphabet said it is working hard to bring more capacity online to meet long-term demand, and expects strong demand for its TPU systems to continue as it scales. Confirmed
2. Amazon plans to start selling its Trainium offerings externally in late 2027, so watch whether that launch happens on schedule and attracts paying customers beyond internal use. Proposed
3. Watch whether external chip sales generate meaningful added revenue and whether both companies keep relying on Nvidia for GPUs, which affects Nvidia's position and investor views. Analyst inference

Evidence

• seekingalpha.com