Amazon has revealed that its in-house chip business has reached an annual revenue run rate of more than $20 billion, highlighting the company’s growing strength in the global AI and cloud computing race.

The European Union’s top competition official, Teresa Ribera, is meeting leaders of major tech companies including Alphabet Inc., Meta Platforms, OpenAI, and Amazon as concerns grow over artificial intelligence dominance.

Amazon’s (NASDAQ: AMZN) shares have slipped 9% year-to-date, raising questions about whether the company can still deliver long-term investor gains amid its massive AI-focused spending.

Amazon has announced plans to cut around 16,000 jobs globally in its second major round of layoffs in just three months, as the company rolls back pandemic-era over-hiring and accelerates the adoption of artificial intelligence across its operations.

Amazon is preparing a new round of corporate job cuts that could begin as early as next week, as the company moves forward with a plan to eliminate roughly 30,000 white-collar roles, according to sources familiar with the matter.

In his annual shareholder letter released Thursday, Amazon CEO Andy Jassy forecasted that rapid advancements in artificial intelligence, coupled with a more competitive chip market, will drive down the current high costs associated with AI.