Overview
- In a shareholder letter Thursday, CEO Andy Jassy said AWS AI services now exceed a $15 billion annualized revenue run rate, a yearly pace based on current sales.
- Jassy said Amazon has customer commitments for a substantial share of this year's AWS spending and expects most of that capacity to monetize in 2027 and 2028.
- Amazon’s in‑house chips business, which includes Trainium and Graviton, has doubled to an annual run rate above $20 billion, with newer Trainium capacity nearly sold out and possible future sales of full racks to third parties.
- Jassy said free cash flow fell to $11 billion from $38 billion after a $50.7 billion jump in capital spending, reflecting the cost of building AI data centers and networking.
- Analysts are divided, though BNP Paribas kept an outperform rating and sees roughly 50% upside as shares edged higher in early trading.