Amazon (AMZN) CEO Andy Jassy released his annual shareholder newsletter on Thursday, outlining the company’s approach to AI and indicating that Amazon is thinking about selling its own AI processors to third parties, increasing competition with Nvidia (NVDA) and AMD (AMD).

According to Jassy, AWS’s AI revenue has a run-rate of more than $15 billion as of Q1 2026 and continues to grow. What’s more, he said the business could be growing faster, but despite adding 3.9 gigawatts of capacity in 2025 and plans to double that by 2027, the company is still capacity-constrained.

The CEO also took a shot at Nvidia, saying that while Amazon continues to use that company’s chips, customers want better “price-performance.” That, Jassy said, is why Amazon’s custom AI GPU Trainium2 chip is sold out, while is Trainium3 is “nearly fully-subscribed” despite the fact that it started shipping at the start of 2026.

And its Trainium4, which is still more than a year away from broad availability, is also selling well.

According to the chief executive, Amazon’s chip business has an annual revenue run rate of $20 billion and is growing at triple-digit year-over-year rates. But Jassy says that amount is understated because it only monetizes its chips through its AWS EC2 service.

If it were a standalone business, he said, Amazon’s chip revenue would have a run rate of roughly $50 billion.

“There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future.”