Amazon CEO reveals AI revenue, dismisses spending doubts in annual letter

Amazon CEO Andy Jassy has disclosed that Amazon Web Services (AWS) AI services now generate over $15 billion in annualized revenue. This announcement came in his recent annual letter to shareholders, where he also strongly defended the company’s aggressive AI investments. Amazon plans to spend approximately $200 billion in capital expenditures in 2026, with the majority allocated to AI infrastructure such as data centers, servers, networking equipment, and advanced chips. Jassy emphasized that this investment is crucial to maintaining Amazon’s leading position in the AI-driven cloud computing race and capturing what he described as a “once-in-a-lifetime opportunity.” Despite investor concerns questioning the timing and scale of Amazon’s AI spending, Jassy remains confident it is not excessive but rather necessary for future growth. He also highlighted Amazon’s internal chip development, including the Trainium line, which is seeing growing demand and could potentially save the company billions in capital costs over time. AWS’s AI-driven revenue surge underscores how AI is becoming central to Amazon’s cloud offering and overall business strategy. This focus positions Amazon to compete robustly against other cloud and AI players, such as Microsoft and Google, in an expanding market where AI capabilities are increasingly critical for attracting enterprise customers. Jassy’s openness about AI revenue figures and investment plans offers rare transparency into Amazon’s AI ambitions and the important role AI plays in its long-term growth trajectory.