AMZN
META
Another one for the chip pile
Meta is reportedly striking a deal with Amazon to use Amazon’s custom CPU chips for agentic AI workloads. Translation: AWS isn’t just selling compute anymore — it’s trying to turn its homegrown silicon into a real business, and Meta just walked into the store.
Why investors should care
For Amazon, this is the kind of news that helps the company’s AI narrative stop sounding like a PowerPoint and start sounding like a revenue stream. Custom chips can mean better margins, stickier cloud customers, and a little less dependence on Nvidia’s always-packed dance card.
For Meta, the logic is pretty simple: if Amazon’s chips can do the job efficiently, why pay full-price rent forever? Big AI players are in a weird shopping phase right now, mixing and matching infrastructure like they’re building a fantasy football roster.
The bigger picture
This also reinforces a theme you’ve probably noticed: the AI boom isn’t just about model quality, it’s about who controls the plumbing. Every deal like this nudges Amazon closer to being a serious AI infrastructure player instead of just the giant place where your sneakers show up one day early.
Big picture: if more cloud customers start biting on Amazon’s chips, that could quietly become one of the more important growth levers in the whole AI race.