Amazon (AMZN) CEO Andy Jassy launched his annual shareholder e-newsletter on Thursday, outlining the corporate’s strategy to AI and indicating that Amazon is considering promoting its own AI processors to 3rd events, growing competitors with Nvidia (NVDA) and AMD (AMD).
According to Jassy, AWS’s AI revenue has a run-rate of greater than $15 billion as of Q1 2026 and continues to develop. What’s extra, he stated the enterprise could possibly be rising quicker, however regardless of including 3.9 gigawatts of capability in 2025 and plans to double that by 2027, the corporate remains to be capacity-constrained.
The CEO additionally took a shot at Nvidia, saying that whereas Amazon continues to make use of that firm’s chips, clients need higher “price-performance.” That, Jassy stated, is why Amazon’s customized AI GPU Trainium2 chip is offered out, whereas is Trainium3 is “nearly fully-subscribed” even if it began delivery at first of 2026.
And its Trainium4, which remains to be greater than a yr away from broad availability, can also be promoting properly.
According to the chief government, Amazon’s chip enterprise has an annual revenue run price of $20 billion and is rising at triple-digit year-over-year charges. But Jassy says that quantity is discreet as a result of it solely monetizes its chips by means of its AWS EC2 service.
If it have been a standalone enterprise, he stated, Amazon’s chip revenue would have a run price of roughly $50 billion.
“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.”
