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Amazon CEO Defends Company's $200 Billion Bet on AI
Jassy said demand for AWS AI services and custom chips is surging as Amazon argues the spending will fuel future revenue and operating income.
- On Thursday, Amazon CEO Andy Jassy released his annual shareholder letter, revealing AWS AI revenue has surpassed a $15 billion annual run rate while the company plans around $200 billion in AI infrastructure investment this year.
- Jassy argued Amazon must pursue a 'once-in-a-lifetime opportunity' and maintain pace with 'very high demand' for AI compute, justifying spending that some investors have recently questioned.
- Custom chip investments including Graviton and Trainium have reached an annual revenue run rate of more than $20 billion, with demand so intense that AWS faces 'capacity constraints that yield unserved demand,' Jassy said.
- Amazon reached $717 billion in revenue in 2025, a 12% increase, as Jassy wrote the company is 'investing to be the meaningful leader' to secure significantly larger future operating income.
- AWS added 3.9 gigawatts of power capacity in 2025 and expects to double this by 2027, while Jassy touted the virtues of following 'squiggly lines' rather than straight paths to drive long-term value.
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15 Articles
Amazon CEO Andy Jassy Just Delivered Bad News for the Artificial Intelligence (AI) Bears
Key PointsIn his annual letter to shareholders, Amazon CEO Andy Jassy said he does not see an artificial intelligence bubble.Furthermore, Jassy said that Amazon has strong visibility into future cash flows from the capacity it is spending hundreds of billions on to install.Jassy views AI as a "once-in-a-lifetime" opportunity.These 10 stocks could mint the next wave of millionaires › Artificial intelligence (AI) stocks have struggled this year, n…
Amazon defends high AI spending
US tech giants are doubling down on massive AI spending despite lingering concerns of a bubble and energy shocks stemming from the Middle East conflict.Amazon CEO Andy Jassy dismissed concerns about the company’s projected $200 billion in capital expenditure this year — mostly on AI buildout — telling investors in his annual letter, “We’re not going to be conservative.”And Meta, a top AI infrastructure spender, struck a $21 billion cloud capacit…
Andy Jassy stated that the company will not be conservative in its investments in artificial intelligence, given that Amazon projects investments in the range of US$200 billion this year.
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