Ming-Chi Kuo: Amazon's consumer electronics shift to self-developed processors to optimize cost structure

Analyst Guo Mingchi stated that Amazon is planning to develop its own consumer electronics processors in preparation for the ongoing wave of AI infrastructure investment, aiming to reduce chip costs and free up sufficient funds for AI investments. Amazon's free cash flow in the first quarter of 2026 is only about $1.2 billion. Starting from 2027, Amazon plans to gradually adopt the COT (Customer Owned Tool) model, similar to that used for AI server chips Trainium, to develop the required processors, with Alchip responsible for backend design and testing. After the full transition, the annual shipment volume is expected to reach 40 million units. (Sina Finance)
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