Amazon custom chips get a boost from Meta, giving the cloud giant another path to win in AI

amazon shares jumped nearly 3% to above $263 on friday, on track for a second record-high close this week. the catalyst: meta agreed to use amazon's graviton chips for at least three years, making meta a top-five customer for the arm-based cpus. the deal highlights amazon web services' growing role in ai infrastructure. andy jassy's latest shareholder letter noted that "virtually all ai thus far has been done on nvidia chips, but a new shift has started." amazon's chip business — graviton, trainium, and nitro — now has an annual revenue run rate over $20 billion, growing triple-digit percentages year-over-year. jassy said amazon's chips can lower costs for aws customers. for meta, shifting workloads onto graviton could reduce compute costs for running ai across facebook, instagram, and its ad platform. both companies report earnings on wednesday, alongside microsoft and alphabet.