Amazon is further expanding its power in the cloud business with its own chips. Graviton could put increasing pressure on the dominance of established semiconductor companies.
• According to Amazon, Graviton chips offer significantly better price-performance than classic server processors
• Demand is so high that capacities are already heavily utilized
• Chip offensive could reduce dependence on NVIDIA, Intel and AMD
Amazon relies on its own chips as strategic leverage
Amazon is pushing ahead with the restructuring of its cloud business with its self-developed Graviton processors. The chips were specifically designed for use in data centers and are intended to make applications faster, cheaper and more energy efficient. As the company says, they aim to replace classic server processors that were not originally designed for cloud workloads.
Since its introduction in 2018, Amazon has already released five generations of Graviton chips. According to the company, the current version, Graviton5, offers up to 25 percent more performance than its predecessor and has up to 192 processor cores. At the same time, energy efficiency remains a key selling point.
Price-performance as a decisive competitive advantage
A central point of the strategy is the cost structure. According to CEO Andy Jassy, Graviton chips “deliver up to 40 percent better price-performance than comparable x86 processors.” This is exactly where Amazon comes in: customers should pay significantly less for the same or better performance.
That’s what’s coming. According to the company, 98 percent of the top 1,000 customers of the cloud platform AWS Graviton-based systems now use systems. In addition, more than half of the newly added computing power comes from these chips.
The high demand is also reflected in capacity utilization. According to Jassy, two large customers even asked to “buy the entire Graviton capacity for 2026” – a request that Amazon had to reject.
Direct attack on established chip giants
With Graviton, Amazon is increasingly positioning itself as a serious competitor for classic semiconductor manufacturers. According to eTeknix, its own chips now compete directly against products from NVIDIA, Intel and AMD.
Amazon is pursuing a clear strategy: less dependence on external suppliers and at the same time better margins in the cloud business. The chips are developed by the subsidiary Annapurna Labs and are deeply integrated into the AWS infrastructure.
Jassy speaks of a business that is “on fire”. Extrapolated, the chip division could achieve annual sales of around $50 billion as an independent company, according to his information.
More than just the cloud: expansion into the hardware business possible
So far, Amazon has only used its chips within its own cloud. But that could change. The group indicated that it would also sell complete server racks or chips to external customers in the future.
Such a step would catapult Amazon directly into the global semiconductor market and significantly intensify the competitive situation. At the same time, the business model would be expanded beyond the cloud.
Graviton as a building block of a larger AI strategy
Graviton is only part of the overall strategy. At the same time, Amazon is developing its own chips for AI applications with the Trainium series. Together they form the basis for an infrastructure that is intended to become more independent of external providers in the long term.
This results in a clear trend for investors: Amazon is increasingly developing from a cloud provider into an integrated infrastructure group. The company’s own chips could become a decisive lever for growth, margins and competitiveness.
Benedict Kurschat, editorial team at finanzen.net
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