Marvell Technology (MRVL) shares rose more than 5% in premarket trading on Friday after Amazon (AMZN) said it is seeing a lot of demand for its Trainium processors.
“Trainium2 continues to see strong adoption, is fully subscribed is now a multibillion-dollar business that grew 150% quarter-over-quarter,” Amazon CEO Andy Jassy said on the company’s earnings call. Marvell manufactures Amazon’s Trainium processors.
Jassy, who took over for Amazon co-founder Jeff Bezos as CEO in July 2021, conceded that a “small number” of “very large customers” are using Amazon’s Trainium processors, but he expects that more customers will start using Amazon’s latest version, Trainium3.
“We’re building Bedrock to be the biggest inference engine in the world and in the long run, believe Bedrock could be as big a business for AWS as EC2, and the majority of token usage in Amazon Bedrock is already running on Trainium,” Jassy added.
Trainium3 is expected to be previewed for customers at the end of 2025, with greater volume coming in 2026.
Jassy also said that Amazon is working with companies like Nvidia (NVDA), AMD (AMD) and Intel (INTC) and he expects to keep growing those partnerships over time.
“You’re going to see us continue to be very aggressive in investing in capacity because we see the demand,” Jassy added. “As fast as we’re adding capacity right now, we’re monetizing it. It’s still quite early and represents an unusual opportunity for customers in AWS.”