Amazon holds talks to sell Trainium AI chips to third-party data centers as Trainium3 nears sellout

Amazon is in talks to sell its in-house Trainium AI training chips to third-party data centers, in a move aimed at challenging Nvidia’s dominance in AI hardware. The company said Trainium3 is largely sold out and that a fourth-generation chip is expected to debut next year. The strategy could lift Amazon’s AI infrastructure revenue and strengthen differentiation for AWS, but some in the market see it as a more direct challenge to Nvidia’s 94% share of GPU sales, potentially adding industry-wide pricing pressure.