Overview
- Amazon CEO Andy Jassy said Thursday in a shareholder letter that AWS AI services now generate more than $15 billion a year, and the stock rose nearly 5% after the update.
- The AI revenue equals about 10% of Amazon Web Services’ roughly $142 billion in annual sales, showing that AI is becoming a meaningful part of the cloud business.
- Amazon plans about $200 billion in capital spending for 2026 focused on AI infrastructure, and it expects much of the return to show up in 2027–2028 with customer commitments already in hand.
- The custom chip unit, which includes Graviton CPUs, Trainium AI chips, and Nitro networking cards, has doubled to an annualized run rate above $20 billion, with Trainium 3 now available and Anthropic using it.
- Jassy also said it is possible Amazon could sell racks of its AI chips to outside buyers in the future, which would move the company into direct hardware competition with Nvidia and AMD.