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In today’s artificial Intelligence (AI) boom, the chips behind the scenes matter just as much as the models everyone talks about. Companies are now racing to build custom processors that can run AI faster and cheaper, giving them an edge in a market where every second and every dollar count. Amazon (AMZN) has quietly been preparing for this moment, and now it is stepping forward.
Far beyond its retail roots, Amazon has evolved into a diversified digital powerhouse, spanning cloud computing, digital advertising, and AI. That momentum continued this week after AWS rolled out a wave of AI announcements at re:Invent 2025, including the debut of its new Trainium3 chip, a significant upgrade built to tackle intensive AI workloads at a lower cost.