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Amazon CEO Andy Jassy\u2019s annual shareholder letter<\/a> reads something like a Kendrick Lamar diss track, if the rapper was a corporate-speak talking CEO and not a poetic Pulitzer-prize winning musician.<\/p>\n Meaning, you have to know the history to understand all of the competitors Jassy takes aim at, alongside cute personal stories about his unrealized dream of being a sportscaster and watching hockey games with his dad.<\/p>\n Of course, Jassy doesn\u2019t throw the gauntlet down directly. He takes a more nuanced approach. For instance, in his challenge to Nvidia, he writes, \u201cWe have a strong partnership with NVIDIA, will always have customers who choose to run NVIDIA\u201d and will always support these chips in its cloud.<\/p>\n But he also says: \u201cVirtually all AI thus far has been done on NVIDIA chips, but a new shift has started.\u201d AWS customers, he says, \u201cwant better price-performance\u201d meaning Amazon\u2019s own home-grown Trainium AI chips. <\/p>\n Jassy says demand is so high for this chip that capacity for the newest one, Trainium3, is nearly sold out. Remarkably, he says that capacity is also nearly sold out for Trainium4, which still 18 months away from being available.<\/p>\n This means that Trainium has hit a $20 billion annual revenue run rate. But if Amazon were a chipmaker that sold its wares to others, it would be at $50 billion ARR, he postulates. <\/p>\n Granted, Nvidia did $215.9 billion in actual revenue<\/a> last year. Nvidia may not be shaking in its boots, yet. Still, Jassy presents Trainium as a formidable up-and-comer.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco, CA<\/span> Jassy didn\u2019t spare Intel either. He points out that AWS\u2019s homegrown Graviton CPU, a competitor to the Intel x86 architecture, \u201cis now used expansively by 98% of the top 1,000 EC2 customers,\u201d aka some of the biggest companies in the world. Two companies even asked to \u201cbuy all<\/em> of our Graviton instance capacity in 2026,\u201d he writes (emphasis his). \u201cWe can\u2019t agree to these requests given other customers\u2019 needs, but it gives you an idea of the demand.\u201d<\/p>\n He promised that Amazon\u2019s Starlink competitor, Amazon Leo, scheduled to launch in mid-2026 is already succeeding, too. It\u2019s won contracts from Delta Airlines, AT&T, Vodafone, Australia\u2019s National Broadband Network, NASA, among others.<\/p>\n Interestingly, he also said Amazon could be looking at selling robotics one day. It may turn all the data from its 1 million warehouse robots into \u201crobotics solutions\u201d for industrial uses and consumers, he wrote. Is there an Amazon humanoid in our future? We\u2019ll see. He talked up other Amazon businesses, too, like same-day delivery, groceries, and drones.<\/p>\n But mostly, Jassy tried to make the case for the hundreds of billions of dollars of capital expenditures he\u2019s committed. In February, he announced plans to spend $200 billion in 2026 on capex<\/a>, mostly building out AWS data centers. That\u2019s more than any of the other major tech companies, which are also spending big on capex. Jassy\u2019s pitch to shareholders makes sense considering Amazon\u2019s stock plunged to below $200 a share and hasn\u2019t recovered.<\/p>\n \u201cWe\u2019re not investing approximately $200 billion in capex in 2026 on a hunch,\u201d he wrote, using as an example that his deal with OpenAI included the model maker pledging to spend $100 billion on AWS. Of course, there are those who doubt OpenAI will meet all of its spending promises<\/a>.<\/p>\n In a nod to that, Jassy insists that beyond OpenAI, \u201cthere are several other customer agreements completed (and unannounced), or deep in process,\u201d lined up to buy the AWS capacity.<\/p>\n We\u2019ll have to wait and see. Those who cause a bubble are never the ones who see (or admit) to its existence. \u201cI\u2019ve followed the public debate on whether this technology is over-hyped, whether we\u2019re in \u2018a bubble.\u2019\u201d But he declares in this letter that, for Amazon at least, this isn\u2019t the case.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n