Amazon shifts to in-house chip production to boost AI efforts

Amazon has officially announced plans to build custom processors for its hardware, signaling a major change in strategy after two decades of using third-party components to support its AI initiatives. The tech giant is collaborating with Alchip on the design process and expects to produce 40 million units every year. Due to increased spending on technology, Amazon reported that its free cash flow dropped by 95% to $1.2 billion during 2026.

by shortkt.com
4 hours ago
Amazon shifts to in-house chip production to boost AI efforts | ShortKT