Amazon CEO Andy Jassy has outlined his view of the future of AI at the company, offering six “key truths” concerning what the technology can, and will do.
Laid out in a blog post accompanying his annual letter to company shareholders, Jassy shared his thoughts on what Amazon’s role in the AI-powered future will be.
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“We have never seen a technology more quickly adopted than AI”
Well, to begin – Jassy certainly doesn’t believe the hype around AI is being blown out of proportion.
“Every customer experience will be reinvented by AI, and there will be a slew of new experiences only possible because of AI,” he notes.
“I’ve followed the public debate on whether this technology is over-hyped, whether we’re in “a bubble,” and if the margins and ROIC will be appealing. My strong conviction, at least for Amazon, is that the answers are no, no, and yes.”
Jassy goes on to state, “we have never seen a technology more quickly adopted than AI”, giving the example of ChatGPT’s rapid growth after the last few years, and likening it to Edison’s launch of the first commercial power station in 1882, and the unseen potential this had to everyday consumers.
“AI may have comparable impact,” Jassy says. “The difference is that electricity took 40 years to get where it was going. AI appears to be moving ten times faster.”
“Amazon is smack in the middle of this land rush”
Luckily, Amazon (mainly through AWS) is well set to provide your business with everything you need to adopt AI.
Jassy notes the astounding growth and success of AWS, which he claims now has an AI revenue run rate of over $15 billion in Q1 2026 (nearly 260 times larger than AWS was at the same point in its lifespan)- and this is growing “rapidly”.
Jassy says AWS offering broader capabilities than competitors, along with a global network meaning customer inference can remain as local as possible, and a broad and capable ecosystem of integration with non-AI services, alongside “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 remark about AWS’s advantaged performance as they increasingly move their AI to AWS,” he notes.
“AWS could be growing even faster”
Despite the tremendous growth at AWS, Jassy (who formerly held the top job at the business), then notes how it could yet expand even further.
He notes how AWS reported 24% YoY growth with a $142 billion dollar revenue run rate in its Q4 2025, and how, even though it added 3.9GW of new power capacity in 2025, 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 yield unserved demand,” noting how customers are asking for more and more compute as AI demands increase.
“Our chips business is on fire”
Since launching Graviton in 2018, AWS’ chip business has expanded hugely, with the fourth generation hardware announced in December 2025.
It’s clear that Jassy and Amazon as a whole see Graviton as a major revenue driver going forwards, as the company looks to offer an alternative to the status quo in the AI market, where he notes, “virtually all AI thus far has been done on Nvidia chips.”
“A new shift has started,” Jassy says. “We have a strong partnership with Nvidia, 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 price-performance.”
He likens the state of affairs to when Intel dominated the CPU space, and notes “demand for Trainium is booming.”
“Having our own hotly demanded AI chip opens up many possibilities, but perhaps none larger than the ability to lower costs for customers and secure better economics for AWS. At scale, we expect Trainium will save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others’ chips for inference.”
“The way AWS’s cash cycle works is that the faster AWS grows, the more short-term capex we’ll spend”
Jassy’s truths then get into the complex financial weeds a little, as he delves into AWS’ cash cycle as a way of demonstrating “how much short-term capex we’ll spend”.
The TL:DR of this is that having short-term capex allows AWS (and Amazon) to quickly spend and invest in the likes of “land, power, buildings, chips, servers, and networking gear”, ahead of the company being able to monetize it – all of which means it can spin up future new investments quickly, ensuring (probably) more success.
Or as Jassy puts it – “We’ve been through this cycle with the first big AWS growth wave, and liked the results.”
“A once-in-a-lifetime opportunity”
Finally, looking forward, Jassy notes that Amazon is hopeful about the future due to the strengths of its customer base – including the recent OpenAI commitment of over $100 billion.
Intriguingly, he also mentions “several other customer agreements completed (and unannounced), or deep in process” – so we may hear more of that to come soon.
“AI is a once-in-a-lifetime opportunity where the current growth is unprecedented and the future growth even bigger,” Jassy concludes.
“AWS has a significant leadership position with the broadest functionality, strongest security and operational performance, largest share of customers and revenue, strong desire from customers to run their AI in AWS, and an opportunity to build what could be a new pillar for Amazon in chips.”
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