Amazon's CEO, Andy Jassy, has revealed significant milestones in the company's technology ventures, highlighting a $15 billion annual run rate for AI revenue within AWS and over $20 billion generated from Amazon's internal chips business. Two major clients have expressed interest in purchasing all available capacity for the Graviton chip in 2026, although Amazon declined the offer, indicating high demand for its products.
In his latest letter to shareholders, which continues a tradition started by Jeff Bezos in 1997, Jassy emphasizes the company's commitment to innovation despite potential challenges ahead. He noted that Amazon is investing approximately $200 billion in capital expenditures for 2026, underscoring confidence in the firm's strategic direction. Jassy's letter serves as a defense of Amazon's investments in various sectors, including AI, satellite internet, and rapid delivery services.
Additionally, Jassy reported that Amazon has become the second-largest grocery retailer in the U.S. and is preparing for the commercial launch of its satellite broadband service, Amazon Leo, in mid-2026. The CEO also mentioned the expansion of services such as Alexa+ and the autonomous ride-hailing company, Zoox, which is beginning commercial operations.