Baker notes Amazon spent more on CapEx in two years than in the preceding twenty years.
“It's not a comment on Amazon. It's just a comment on the supplier response. They have spent more money on CapEx in the last two years than they did in the preceding twenty years.”
Baker provides specific numbers showing Amazon's CapEx jumped from $62B over 20 years to $87B in just two years.
“From 1999 to 2019, they spent $62,000,000,000 on CapEx. They're going spend $87,000,000,000 in 2020 and 2021. That's crazy.”
Baker predicts Trainium will be to 2026 what TPUs were to 2025 as Trainium 3 ramps.
“Tranium, by far. Tranium is going to be to 2026, especially in the second half of this year when Tranium three really ramps, as TPUs were to twenty twenty five.”