Ming‑Chi Kuo says Amazon will develop in‑house processors for consumer
electronics to lower chip costs and free capital for AI infrastructure. Amazon's
free cash flow was about $1.2bn in 2026 Q1. From 2027 it will gradually adopt a
COT (customer‑owned tooling) model similar to Trainium for these chips, with
Shixin handling backend design and testing; full conversion could reach roughly
40m units shipped annually.