Amazon CEO Andy Jassy disclosed in the annual shareholder letter released on Thursday that the commercial returns of the company's AI layout are accelerating across the board: the chip business's annualized revenue exceeds $20 billion, and the AWS cloud business's AI revenue annualized run rate has surpassed $15 billion. Both figures are being officially disclosed by the company for the first time.
Jassy stated that AWS's AI revenue is still &#34;climbing rapidly&#34; and that the overall growth of the cloud business could have been faster if not for the capacity bottlenecks faced by the entire tech industry. He also reiterated the company's willingness to bear short-term free cash flow pressure in exchange for significant surplus in the medium to long term.
Amazon's chip business (encompassing the Graviton, Trainium, and Nitro series) has seen its annualized revenue double from the $10 billion disclosed earlier this year to over $20 billion, with a triple-digit year-over-year growth rate. Jassy wrote in the letter: &#34;Having a custom AI chip that is in high demand opens up many possibilities, and perhaps the most important of these is reducing costs for customers and creating better economics for AWS.&#34;
Amazon announced in February that its capital expenditure scale would be approximately $200 billion by 2026, primarily for AI infrastructure construction. This figure initially caused unease among investors. In Thursday's letter, Jassy responded to this, emphasizing that most of the spending flowing to AWS will be monetized between 2027 and 2028, stating, &#34;we have already secured customer commitments for a substantial portion of this spending.&#34;
<h2>Chip Business: Potential Annualized Revenue Scale of $50 Billion if Operated Independently</h2>
Amazon's chip business's current annualized revenue of $20 billion does not yet fully reflect its actual output scale. Jassy pointed out in the shareholder letter that if the chip business were operated independently and sold the chips produced this year to both AWS and third-party customers like other major chip manufacturers, its annualized revenue scale would reach approximately $50 billion.
Demand also shows extreme strength. Trainium2 chips are essentially sold out, Trainium3 capacity is almost entirely booked, and some capacity for Trainium4 has also been secured in advance. Jassy stated that the future sale of entire chip racks to third parties is &#34;quite possible.&#34;
<h2>AWS AI Revenue Officially Disclosed for the First Time</h2>
In this shareholder letter, Amazon officially disclosed the direct financial returns of its AWS cloud business's AI initiatives for the first time: In the first quarter of 2026, AWS's AI revenue annualized run rate has exceeded $15 billion. This is Amazon's most direct quantitative statement to date regarding the commercial conversion of its AI investments.
AWS's full-year revenue for 2025 was $128.7 billion, a year-over-year increase of approximately 20%, and market expectations place its 2026 sales at $142 billion. Jassy had previously told Reuters that he expects AI to eventually drive AWS's annual sales to $600 billion, double his previous estimate.
<h2>Logistics, Groceries, and Satellite Internet: Business Expansion in Full Swing</h2>
Beyond the AI business, multiple Amazon business lines have also made significant progress. In logistics, the company has committed over $4 billion to expand its rural delivery network, and the number of robots operating within fulfillment centers has surpassed 1 million.
In retail and groceries, Amazon's grocery business total sales for 2025 exceeded $150 billion; the rapid delivery service Amazon Now is beginning to expand into the US and European markets.
In satellite internet, &#34;Project Kuiper&#34; currently has over 200 satellites in orbit, with formal commercial launches scheduled for mid-2026. The company has already secured substantial revenue commitments from enterprise and government customers.

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Amazon CEO Andy Jassy disclosed in his annual shareholder letter that the commercial returns of the company's AI layout are accelerating: the chip business's annualized revenue exceeds $20 billion, and the AWS cloud business's AI revenue annualized run rate has surpassed $15 billion, both reported for the first time. Driven by strong demand for custom chips, the chip business's scale could reach $50 billion if operated independently

- Amazon CEO Andy Jassy revealed in the annual shareholder letter that the company’s AI-related revenue is accelerating, with annualized revenue from its chip business exceeding $20 billion and AWS AI revenue surpassing $15 billion.  
- Jassy noted that AWS AI revenue continues to rise rapidly, despite industry-wide capacity constraints, while emphasizing Amazon’s willingness to accept short-term cash flow pressures for long-term gains.  
- The letter also highlighted that if the chip business operated independently, its revenue could reach $50 billion, supported by strong demand and upcoming product launches in AI and logistics sectors.

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Defying Capacity Bottlenecks! Amazon's Q1 AI Annualized Revenue Exceeds $15 Billion, Custom Chip Scale Doubles to $20 Billion