Amazon Is Considering Selling Its AI Chips to Other Companies

Amazon.com Inc.is considering selling its chips to other companies, Chief Executive Officer Andy Jassy said Thursday, adding that the cloud-computing giant’s in-house silicon unit is on pace to bring in more than $20 billion over the course of a year.

The disclosure offers a rare glimpse into the scale of Amazon’s in-house chip operation, which produces general-purpose computing and AI accelerators, as well as chips that make the company’s servers run more efficiently.

Today, Amazon rents that hardware to customers of Amazon Web Services, the cloud-computing unit. But demand for processors capable of building artificial intelligence models has strained ...