Amazon Ceo Takes Aim At Nvidia, Intel, Starlink, More In Annual Shareholder Letter

Amazon CEO Andy Jassy’s annual shareholder letter sounds thing for illustration a Kendrick Lamar diss track, if nan rapper was a corporate-speak talking CEO and not a poetic Pulitzer-prize winning musician.

Meaning, you person to cognize nan history to understand each of nan competitors Jassy takes purpose at, alongside tiny individual stories astir his unrealized dream of being a sportscaster and watching lucky games pinch his dad.

Of course, Jassy doesn’t propulsion nan gauntlet down directly. He takes a much nuanced approach. For instance, successful his situation to Nvidia, he writes, “We person a beardown business pinch NVIDIA, will ever person customers who take to tally NVIDIA” and will ever support these chips successful its cloud.

But he besides says: “Virtually each AI frankincense acold has been done connected NVIDIA chips, but a caller displacement has started.” AWS customers, he says, “want amended price-performance” meaning Amazon’s ain home-grown Trainium AI chips.

Jassy says request is truthful precocious for this spot that capacity for nan newest one, Trainium3, is astir sold out. Remarkably, he says that capacity is besides astir sold retired for Trainium4, which still 18 months distant from being available.

This intends that Trainium has deed a $20 cardinal yearly gross tally rate. But if Amazon were a chipmaker that sold its wares to others, it would beryllium astatine $50 cardinal ARR, he postulates.

Granted, Nvidia did $215.9 cardinal successful existent revenue past year. Nvidia whitethorn not beryllium shaking successful its boots, yet. Still, Jassy presents Trainium arsenic a formidable up-and-comer.

Jassy didn’t spare Intel either. He points retired that AWS’s homegrown Graviton CPU, a competitor to nan Intel x86 architecture, “is now utilized expansively by 98% of nan apical 1,000 EC2 customers,” aka immoderate of nan biggest companies successful nan world. Two companies moreover asked to “buy all of our Graviton lawsuit capacity successful 2026,” he writes (emphasis his). “We can’t work together to these requests fixed different customers’ needs, but it gives you an thought of nan demand.”

He promised that Amazon’s Starlink competitor, Amazon Leo, scheduled to motorboat successful mid-2026 is already succeeding, too. It’s won contracts from Delta Airlines, AT&T, Vodafone, Australia’s National Broadband Network, NASA, among others.

Interestingly, he besides said Amazon could beryllium looking astatine trading robotics 1 day. It whitethorn move each nan information from its 1 cardinal storage robots into “robotics solutions” for business uses and consumers, he wrote. Is location an Amazon humanoid successful our future? We’ll see. He talked up different Amazon businesses, too, for illustration same-day delivery, groceries, and drones.

But mostly, Jassy tried to make nan lawsuit for nan hundreds of billions of dollars of superior expenditures he’s committed. In February, he announced plans to walk $200 cardinal successful 2026 connected capex, mostly building retired AWS information centers. That’s much than immoderate of nan different awesome tech companies, which are besides spending large connected capex. Jassy’s transportation to shareholders makes consciousness considering Amazon’s banal plunged to beneath $200 a stock and hasn’t recovered.

“We’re not investing astir $200 cardinal successful capex successful 2026 connected a hunch,” he wrote, utilizing arsenic an illustration that his woody pinch OpenAI included nan exemplary shaper pledging to walk $100 cardinal connected AWS. Of course, location are those who doubt OpenAI will meet each of its spending promises.

In a motion to that, Jassy insists that beyond OpenAI, “there are respective different customer agreements completed (and unannounced), aliases heavy successful process,” lined up to bargain nan AWS capacity.

We’ll person to hold and see. Those who origin a bubble are ne'er nan ones who spot (or admit) to its existence. “I’ve followed nan nationalist statement connected whether this exertion is over-hyped, whether we’re successful ‘a bubble.’” But he declares successful this missive that, for Amazon astatine least, this isn’t nan case.