Amazon CEO Andy Jassy has outlined his vision for the future of AI at the company, offering six “key truths” regarding what the technology can and will do.
In a blog post accompanying his annual letter to the company’s shareholders, Jassy shared his thoughts on Amazon’s role in the future of AI.
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“We have never seen a technology adopted faster than AI”
Well, for starters, Jassy certainly doesn’t believe the hype around AI is overblown.
“Every customer experience will be reinvented by AI, and there will be a multitude of new experiences possible only because of AI,” he notes.
“I have been following the public debate about whether this technology is overhyped, whether we are in a ‘bubble’ and whether the margins and return on investment will be attractive. My firm belief, at least for Amazon, is that the answers are no, no and yes.
Jassy goes on to say, “we’ve never seen a technology adopted faster than AI,” giving the example of ChatGPT’s rapid growth over the past few years, and comparing it to Edison’s launch of the first commercial power plant in 1882, and the unprecedented potential this had for everyday consumers.
“AI could have a comparable impact,” says Jassy. “The difference is that it took 40 years for electricity to get where it needed to get to. AI seems to evolve ten times faster.”
“Amazon is in the middle of this land rush”
Fortunately, Amazon (primarily through AWS) is well-positioned to provide your business with everything you need to adopt AI.
Jassy notes the astonishing growth and success of AWS, which he says now has an AI-generated revenue run rate of more than $15 billion in the first quarter of 2026 (nearly 260 times higher than AWS at the same point in its lifespan) – and that number is growing “rapidly.”
Jassy says AWS offers broader capabilities than its competitors, as well as a global network to keep client inference as local as possible, and a broad and capable integration ecosystem with non-AI services, as well as “the strongest security and operational performance of any AI and infrastructure vendor.”
“We spend a lot of time listening to customers, and they continue to notice the performance benefits of AWS as they move more and more of their AI to AWS,” he notes.
“AWS could grow even faster”
Despite AWS’ enormous growth, Jassy (who previously held the company’s top job) then notes how the company could still grow further.
He notes how AWS reported 24% year-over-year growth, with revenue of $142 billion in Q4 2025, and how even though it added 3.9 GW of new power capacity in 2025, it still expects to double its total power capacity by the end of 2027.
“That represents strong absolute growth,” he says. “And yet we still have capacity constraints that are generating unmet demand,” noting that customers are increasingly demanding more compute as AI demands increase.
“Our chips business is on fire”
Since the launch of Graviton in 2018, AWS’ chip business has grown significantly, with fourth-generation hardware announced in December 2025.
It’s clear that Jassy and Amazon as a whole view Graviton as an important revenue driver in the future, as the company seeks to offer an alternative to the status quo in the AI market, where, he notes, “almost all AI to date has been done on Nvidia chips.”
“A new change has begun,” says Jassy. “We have a strong partnership with Nvidia, we will always have customers who choose to use Nvidia, and we will continue to make AWS the best place to run Nvidia. However, customers want better value.”
He compares the situation to when Intel dominated the processor sector and notes that “demand for Trainium is booming.”
“Having our own, in-demand AI chip opens up many possibilities, but perhaps the biggest is the ability to reduce costs for customers and deliver greater profitability for AWS. At scale, we expect Trainium to save us tens of billions of dollars in capex per year and provide several hundred basis points of operating margin advantage over relying on others’ chips for inference.
“The way the AWS cash cycle works is that the faster AWS grows, the more short-term capex we will spend”
Jassy’s Truths then gets into a bit of complex financial detail, as he delves into AWS’s cash flow cycle to demonstrate “how much short-term investment we’ll spend.”
The TL:DR is that having short-term investments allows AWS (and Amazon) to quickly spend and invest in areas like “land, power, buildings, chips, servers, and networking hardware”, before the company can monetize them – meaning it can quickly generate new future investments, ensuring (probably) more success.
Or as Jassy puts it: “We went through this cycle with the first big wave of AWS growth and we loved the results. »
“A once in a lifetime opportunity”
Finally, looking to the future, Jassy notes that Amazon is hopeful about the future due to its customer strengths, including the recent OpenAI commitment of over $100 billion.
Oddly enough, it also mentions “several other customer deals completed (and not announced) or currently being processed” – so we may hear more coming soon.
“AI is a unique opportunity in which current growth is unprecedented and future growth even greater,” concludes Jassy.
“AWS holds a significant leadership position with the broadest capabilities, strongest security and operational performance, largest customer and revenue share, strong customer desire to run their AI in AWS, and the opportunity to build what could be a new pillar for Amazon in the chip space. »
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