Amazon Quiet Move Could Reshape AI Economics

By Maksym Misichenko · finance.yahoo.com · 27 Feb 2026, 22:28

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This article first appeared on <a href="https://www.gurufocus.com/news/8662878/amazons-quiet-move-could-reshape-ai-economics?utm_source=yahoo_finance&utm_medium=syndication&utm_campaign=headlines&r=caf6fe0e0db70d936033da5461e60141">GuruFocus</a>.
Amazon (<a href="https://finance.yahoo.com/quote/AMZN">NASDAQ:AMZN</a>) is starting to <a href="https://seekingalpha.com/news/4558664-amazon-seeks-to-use-in-house-chips-to-develop-ai-models-exec-says">rethink how it builds AI and the answer might be</a>: do it themselves.
Instead of leaning so heavily on Nvidia's chips, the company is now exploring whether it can train and run AI models using its own in house processors like Trainium and Inferentia. Amazon's new AI lead Peter DeSantis didn't sugarcoat it AI today is just too expensive. And if it's ever going to scale across everything from shopping to logistics to enterprise tools, the cost structure needs to change.
His thinking is straightforward: if Amazon can run its models on its own chips, it can dramatically lower the price of building and deploying AI compared to relying on third party providers.
That's a big shift especially in a market where Nvidia (<a href="https://finance.yahoo.com/quote/NVDA">NASDAQ:NVDA</a>) still controls most of the AI chip stack.
And Amazon is backing this vision with serious spending. CEO Andy Jassy recently said the company plans to invest about $200 billion in 2026, with AI infrastructure and custom silicon playing a central role.