The Tool Desk
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Did Amazon buy Annapurna Labs?
Yes. Amazon acquired Annapurna Labs in 2015. AWS Chief Evangelist Jeff Barr later wrote that Amazon acquired the company after working with its team on the first version of the AWS Nitro System. Amazon has described Annapurna as a specialist microelectronics company and connected its team to the development of custom silicon for AWS.
The acquisition was therefore a purchase of a chip-design business and its capabilities, not a launch of a consumer chip brand. The products associated with the team are used in AWS infrastructure.
Was the purchase price really $350 million?
Contemporaneous technology coverage reported a price of $350 million. Treat that as a reported figure, not an officially disclosed or independently confirmed deal value: the Amazon and SEC passages available for this history do not state an Annapurna-specific price.
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- Your favorite music and content – Play music, audiobooks, and podcasts from Amazon Music, Apple Music, Spotify and others or via Bluetooth throughout your home.
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Amazon’s 2015 Form 10-K reported an aggregate purchase price of $690 million for certain companies acquired that year. The cited disclosure does not name Annapurna or break out its price, so it cannot verify that the company accounted for $350 million of the total.
What did Annapurna’s team build for AWS?
The company’s technical legacy is best understood by workload. Amazon describes the team as working on Nitro, then Graviton, followed by machine-learning chips including Inferentia and Trainium. These are AWS systems and processors, not retail products for individual computer owners.
Rank #2
- Your favorite music and content – Play music, audiobooks, and podcasts from Amazon Music, Apple Music, Spotify and others or via Bluetooth throughout your home.
- Alexa is happy to help – Ask Alexa for weather updates and to set hands-free timers, get answers to your questions and even hear jokes. Need a few extra minutes in the morning? Just tap your Echo Dot to snooze your alarm.
- Keep your home comfortable – Control compatible smart home devices with your voice and routines triggered by built-in motion or indoor temperature sensors. Create routines to automatically turn on lights when you walk into a room, or start a fan if the inside temperature goes above your comfort zone.
- Do more with device pairing – Fill your home with music using compatible Echo devices in different rooms, or create a home theatre system with Fire TV.
- Say goodbye to drop-offs and buffering - With eero Built-in, Echo Dot doubles as a mesh wifi extender, adding up to 1,000 sq. ft. of wifi coverage to your existing eero network.
| Technology | Role described by Amazon or AWS |
|---|---|
| Nitro System | Supports AWS networking, storage and security. |
| Graviton | Arm-based processors for general cloud computing. |
| Inferentia | Machine-learning inference. |
| Trainium | AI training and inference. |
Nitro came before the acquisition
AWS’s account places the relationship before the 2015 purchase: Barr said Amazon acquired Annapurna after working with its team on the first version of Nitro. AWS’s 2018 announcement introducing A1 EC2 instances and Graviton provides later context for the cloud-chip effort, but it does not establish the deal price.
Graviton and machine-learning chips broadened the work
Amazon’s retrospective describes the team moving on to Graviton and then to Inferentia and Trainium. The lines address different computing workloads; their connection is AWS’s use of custom silicon in its cloud infrastructure, rather than a common consumer-chip market.
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- EASE INTO THE DAY - Set up an Alexa routine that gently wakes you with music and gradual light. Glance at the time, check reminders, or ask Alexa for weather updates.
- KEEP YOUR HOME COMFORTABLE - Control compatible smart home devices. Just ask Alexa to turn on lights or touch the screen to dim. Create routines that use motion detection to turn down the thermostat as you head out or open the blinds when you walk into a room.
What does Amazon’s chip business look like now?
In a 2026 company article, Amazon said its custom-chip business had recently exceeded a $25 billion annual revenue run rate. That is Amazon’s own company-reported figure, not an independently verified measure of Annapurna Labs’ standalone revenue or the financial return on its acquisition. It also does not isolate the contribution of any one chip family.
The figure offers a sense of the scale Amazon attributes to its custom-chip business, but it should not be compared directly with the reported $350 million purchase price as if the two measured the same thing. One is a company-reported revenue run rate for a broader business; the other is a reported acquisition price.
Quick Recap
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- Alexa can show you more - Echo Show 5 includes a 5.5” display so you can see news and weather at a glance, make video calls, view compatible cameras, stream music and shows, and more.
- Small size, bigger sound – Stream your favorite music, shows, podcasts, and more from providers like Amazon Music, Spotify, and Prime Video—now with deeper bass and clearer vocals. Includes a 5.5" display so you can view shows, song titles, and more at a glance.
- Keep your home comfortable – Control compatible smart devices like lights and thermostats, even while you're away.
- See more with the built-in camera – Check in on your family, pets, and more using the built-in camera. Drop in on your home when you're out or view the front door from your Echo Show 5 with compatible video doorbells.
- See your photos on display – When not in use, set the background to a rotating slideshow of your favorite photos. Invite family and friends to share photos to your Echo Show. Prime members also get unlimited cloud photo storage.
Rank #4
- Your favorite music and content – Play music, audiobooks, and podcasts from Amazon Music, Apple Music, Spotify and others or via Bluetooth throughout your home.
- Alexa is happy to help – Ask Alexa for weather updates and to set hands-free timers, get answers to your questions and even hear jokes. Need a few extra minutes in the morning? Just tap your Echo Dot to snooze your alarm.
- Keep your home comfortable – Control compatible smart home devices with your voice and routines triggered by built-in motion or indoor temperature sensors. Create routines to automatically turn on lights when you walk into a room, or start a fan if the inside temperature goes above your comfort zone.
- Do more with device pairing – Fill your home with music using compatible Echo devices in different rooms, or create a home theatre system with Fire TV.
- Say goodbye to drop-offs and buffering - With eero Built-in, Echo Dot doubles as a mesh wifi extender, adding up to 1,000 sq. ft. of wifi coverage to your existing eero network.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
