Subject: Jassy Letter
CEO Andy Jassy’s 2025 Letter to Shareholders dropped today (4/9/26):
https://www.aboutamazon.com/ne...

AMZN chips as a standalone business:

"There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future."

"If our chips business was a stand-alone business, and sold chips produced this year to AWS and other third parties (as other leading chips companies do), our annual run rate would be ~$50 billion."

"Amazon Bedrock, AWS’s primary (and very fast-growing) inference service, runs most of its inference on Trainium. At scale, we expect Trainium will save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others’ chips for inference. Our annual revenue run rate for our chips business (inclusive of Graviton, Trainium, and Nitro—our EC2 NIC) is now over $20 billion, and growing triple digit percentages YoY."

CPU shortage:

"Two large AWS customers have already asked if they could buy *all* of our Graviton instance capacity in 2026 (Graviton is our widely-adopted custom CPU chip)—we can’t agree to these requests given other customers’ needs, but it gives you an idea of the demand."

Don't worry, be happy on our AI Capex:

"We’re not investing approximately $200 billion in capex in 2026 on a hunch. The recent OpenAI commitment (over $100 billion) is an example of this, but there are several other customer agreements completed (and unannounced), or deep in process. Of the AWS capex we expect to spend in 2026, much of which will be monetized in 2027-2028, we already have customer commitments for a substantial portion of it."