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Amazon acquired Israeli chip designer Annapurna Labs in 2015. The often-cited $350 million price comes from contemporaneous press coverage, not an acquisition-specific figure confirmed in the Amazon and SEC passages cited here. The acquisition’s better-documented legacy is AWS custom silicon: Nitro infrastructure, Graviton processors, and machine-learning chips Inferentia and Trainium.
Did Amazon buy Annapurna Labs?
Yes. Amazon acquired Annapurna Labs in 2015. AWS Chief Evangelist Jeff Barr described the timing and the relationship in a 2018 post introducing A1 EC2 instances: “We acquired Annapurna Labs in 2015 after working with them on the first version of the AWS Nitro System.” AWS’s A1 announcement places the deal in the development of cloud infrastructure, rather than consumer electronics.
Annapurna was a specialist microelectronics company. Amazon later credited its team with helping develop custom silicon for AWS services and infrastructure. The acquisition did not turn Annapurna’s chips into retail products for ordinary computer buyers; the technologies described by Amazon are used within AWS.
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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesWas the purchase price really $350 million?
$350 million is a contemporaneously reported price, not a deal value independently confirmed in the official Amazon and SEC passages cited here. The distinction matters: the figure is useful context, but it should be described as reported rather than as an officially disclosed purchase price.
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Amazon’s 2015 Form 10-K reports an aggregate purchase price of $690 million for certain companies acquired that year. The cited filing passage does not name Annapurna Labs or break out a price for it, so it cannot verify the $350 million figure. Amazon’s 2015 Form 10-K
What did Annapurna’s team build for AWS?
Amazon’s account of the team’s work traces a progression from infrastructure offload to general-purpose cloud computing and then machine learning. These product lines serve different workloads; they are not interchangeable consumer chips.
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| Technology | AWS role |
|---|---|
| Nitro System | Supports AWS networking, storage, and security. AWS says its team worked with Annapurna on the first version before the acquisition. |
| Graviton | Arm-based processors for general cloud computing, including the A1 EC2 instance family introduced in 2018. |
| Inferentia | Machine-learning inference. |
| Trainium | AI model training and inference. |
Amazon’s retrospective describes Annapurna’s evolution within its custom-silicon effort, from the Nitro work to Graviton and later machine-learning chips. Amazon’s account of its custom-chip work and AWS’s 2018 A1 announcement provide the company’s descriptions of this lineage.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Why the acquisition mattered to AWS
Cloud providers can design chips and systems around the services they operate, rather than relying only on general-purpose processors and components. In AWS’s account, Nitro handles infrastructure functions such as networking, storage, and security; Graviton supplies processors for general cloud workloads; and Inferentia and Trainium address machine-learning workloads. Together, these examples show why Amazon valued a specialist silicon team: custom hardware could be integrated into AWS’s own infrastructure and instance offerings.
Amazon said in 2026 that its custom-chip business had recently exceeded a $25 billion annual revenue run rate. That is Amazon’s company-reported figure, not an independently verified measure, and it refers to the broader custom-chip business—not Annapurna Labs alone. Amazon’s 2026 custom-chip update
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