Amazon CEO Andy Jassy has outlined his vision for the future of AI in the company, offering six “key truths” about 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 what Amazon’s role will be in the AI-driven future.
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“We have never seen a technology adopted more quickly than AI”
Well, for starters, Jassy certainly doesn’t think the hype around AI is being overblown.
“AI will reinvent every customer experience, and there will be a host of new experiences that will only be possible because of AI,” he says.
“I have followed the public debate about whether this technology is overvalued, whether we are in a ‘bubble’ and whether the margins and ROIC will be attractive. My strong belief, at least for Amazon, is that the answers are no, no and yes.”
Jassy goes on to state that “we’ve never seen a technology adopted more quickly 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 invisible potential this had for everyday consumers.
“AI can have a comparable impact,” says Jassy. “The difference is that electricity took 40 years to reach its destination. AI seems to move ten times faster.”
“Amazon is right in the middle of this land rush”
Fortunately, Amazon (primarily through AWS) is well prepared to provide your business with everything you need to embrace AI.
Jassy highlights the astonishing growth and success of AWS, which he says now has an AI revenue rate of more than $15 billion in the first quarter of 2026 (almost 260 times that of AWS at the same point in its lifespan), and this is growing “rapidly.”
Jassy says AWS offers broader capabilities than its competitors, along with a global network, meaning customer inference can remain as local as possible, and a broad, integration-capable ecosystem with non-AI services, along with “the strongest security and operational performance of any AI and infrastructure provider.”
“We spend a lot of time listening to customers, and they continue to highlight the performance advantage of AWS as they increasingly move their AI to AWS,” he says.
“AWS could grow even faster”
Despite the tremendous growth at AWS, Jassy (who previously held the top position at the company), points out how it could still expand further.
He points out how AWS reported 24% year-over-year growth on a revenue run of $142 billion in its fourth quarter of 2025 and how, although it added 3.9 GW of new power capacity in 2025, it still expects to double total power capacity by the end of 2027.
“That’s a lot of absolute growth,” he says, “and yet we still have capacity constraints that create unmet demand,” noting how customers are increasingly asking for more computing as AI demands increase.
“Our chip business is on fire”
Since the launch of Graviton in 2018, AWS’s chip business has expanded greatly, and fourth-generation hardware was announced in December 2025.
It’s clear that Jassy and Amazon as a whole see Graviton as a major revenue driver going forward, as the company looks to offer an alternative to the status quo in the AI market, where it notes that “virtually all AI so far 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 run Nvidia, and we will continue to make AWS the best place to run Nvidia. However, customers want better value for money.”
He compares the situation to when Intel dominated the CPU space and notes that “Demand for Trainium is booming.”
“Having our own in-demand AI chip opens up many possibilities, but perhaps none greater than the ability to reduce costs for customers and ensure better economics for AWS. At scale, we expect Trainium to save us tens of billions of dollars in capital expenditures per year and provide several hundred basis points of operating margin advantage versus relying on third-party chips for inference.”
“The way the AWS cash cycle works is that the faster AWS grows, the more short-term capex we spend”
Jassy’s Truths then gets a little deeper into the complex financial weeds, as he delves into AWS’s cash cycle as a way to demonstrate “how much near-term capex we’ll spend.”
The TL:DR of this is that having a short-term capex allows AWS (and Amazon) to quickly spend and invest in “land, power, buildings, chips, servers, and networking equipment,” before the company can monetize them; all of which means you can quickly drive new future investments, ensuring (probably) more success.
Or as Jassy says: “We’ve been through this cycle with the first big wave of AWS growth and we liked the results.”
“A once in a lifetime opportunity”
Finally, looking ahead, Jassy notes that Amazon is hopeful for the future due to the strengths of its customer base, including OpenAI’s recent commitment of more than $100 billion.
Interestingly, it also mentions “several other customer deals completed (and unannounced), or in process,” so we may hear more about that soon.
“AI is a once-in-a-lifetime opportunity where current growth is unprecedented and future growth is even greater,” Jassy concludes.
“AWS has an important leadership position with the broadest functionality, strongest security and operational performance, the highest share of customers and revenue, a strong customer desire to run their AI on AWS, and an opportunity to build what could be a new pillar for Amazon in chips.”
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