[News] AWS’s Trainium3 Reportedly Draws Interest from Large, Mid-Sized Clients, Ramping Early ’26

Amazon’s cloud unit AWS posted 20% sales growth in Q3, while its custom chip developments also grabbed attention during the earnings call on October 30^th. According to Yahoo! Finance transcripts, CEO Andy Jassy said Trainium2 adoption remains strong, and Trainium3 is set to preview by year-end, with full-scale production ramping early 2026.

Jassy reportedly highlighted that Trainium2 is fully subscribed, now a multi-billion-dollar business growing 150% quarter-over-quarter. As per Yahoo! Finance, he said Trainium2 currently serves a small group of very large customers. Strong price-performance—30–40% better than alternatives—combined with growing demand for AI inference workloads, is driving wider interest.

Notably, Trainium is expected expand with Trainium3 to accommodate both large and mid-sized clients, which are already showing significant traction in the next-generation chip, he added.

According to Amazon, Project Rainier, the company’s massive AI compute cluster across multiple U.S. data centers, is now online with nearly 500,000 Trainium2 chips. Anthropic is already running its flagship AI model, Claude, on the system, which is expected to scale to over 1 million Trainium2 chips by year-end.

However, CEO Andy Jassy reportedly pointed out that throughout Amazon’s history, AWS has never relied on a single vendor to dominate any major technology component or meet all customer needs. Thus, the company will maintain a long-standing partnership with NVIDIA, purchasing significant volumes of their chips without constraints and expecting to continue doing so in the future, according to Yahoo! Finance.

TrendForce notes that AWS is prioritizing its Trainium v2 chips, with a liquid-cooled rack version expected by late 2025. The Trainium v3, developed jointly with Alchip and Marvell, is planned for mass production in early 2026. AWS’s ASIC shipments are anticipated to more than double in 2025, marking the fastest growth among major CSPs, with a further approximate 20% increase in 2026, TrendForce projects.

Soaring Capex

On the other hand, as Reuters reports, Amazon’s cloud revenue grew at its fastest pace in nearly three years, helping the company forecast quarterly sales above estimates.

The company also projected higher capital spending next year. According to Reuters, Amazon CFO Brian Olsavsky said full-year capital expenditures are expected to reach around $125 billion, with higher spending next year, though he did not provide further details. Through the first three quarters, the company had already spent $89.9 billion, largely on AI-related projects, the report notes.

CNBC reports that Amazon Web Services (AWS) generated $33 billion in third-quarter revenue, above the $32.42 billion projected by analysts, reflecting 18.1% year-over-year growth. Operating income rose 9% to $11.4 billion, accounting for roughly two-thirds of Amazon’s total operating profit and exceeding estimates, the report suggests.

As the leading global cloud infrastructure provider, AWS faces growing competition from Google and Microsoft. Google’s cloud revenue climbed 34%, while Microsoft Azure posted 40% growth in the same period, according to CNBC.

Read more

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