Amazon CEO takes aim at Nvidia, Intel, Starlink, more in annual shareholder letter
CEO Andy Jassy declares a 'new shift' from Nvidia dominance as Amazon's custom AI chips hit a $20B revenue run rate.
Amazon CEO Andy Jassy used his annual shareholder letter to launch a multi-front assault on tech giants, positioning AWS's custom silicon as a formidable alternative. He declared a 'new shift' away from Nvidia's AI chip dominance, revealing that Amazon's Trainium AI accelerators have reached a $20 billion annual revenue run rate, with capacity for the upcoming Trainium3 and Trainium4 (18 months out) nearly sold out. Jassy also took aim at Intel, noting that 98% of the top 1,000 EC2 customers now use AWS's Graviton processors, with two companies even requesting to buy all of Amazon's 2026 Graviton capacity.
Beyond chips, Jassy touted early wins for Amazon's Project Kuiper satellite internet, securing contracts with Delta Airlines, AT&T, Vodafone, and NASA ahead of its mid-2026 launch. He defended Amazon's aggressive $200 billion capital expenditure plan for 2026—the largest among tech peers—primarily for AWS data center expansion. This spending is backed by customer commitments, including a $100 billion pledge from OpenAI, though Jassy acknowledged several other unannounced agreements are in process. The letter serves as a direct challenge to market leaders and a justification for Amazon's massive infrastructure bets.
- Amazon's Trainium AI chips hit a $20B annual revenue run rate, with Trainium3 and Trainium4 capacity nearly sold out.
- 98% of top 1,000 EC2 customers use AWS's Graviton CPUs, challenging Intel's x86 dominance.
- Project Kuiper (Starlink competitor) has secured major contracts with Delta, AT&T, and NASA ahead of its 2026 launch.
Why It Matters
Amazon's massive bet on custom silicon could reshape the $200B+ AI infrastructure market and challenge Nvidia's near-monopoly.