Amazon CEO Takes Aim at Competitors in Annual Shareholder Letter

Amazon CEO Andy Jassy's latest annual shareholder letter has been described as a "diss track" against various competitors, including Nvidia, Intel, and Starlink, while also defending the company's significant capital expenditures.

Key Takeaways:

• Challenge to Nvidia: Jassy acknowledged Amazon's partnership with Nvidia but highlighted a shift in AI chip demand towards AWS's in-house Trainium chips, citing strong demand for Trainium3 and even Trainium4 (which is still 18 months away). This custom chip business has reached a $20 billion annual revenue run rate.
• Competition with Intel: The letter also targeted Intel, noting the widespread adoption of AWS's homegrown Graviton CPU by 98% of top EC2 customers, with some clients expressing extreme demand for its capacity.
• Amazon Leo Satellite Service: Jassy announced that Amazon's Starlink competitor, Amazon Leo, scheduled for a mid-2026 launch, has already secured contracts with major clients like Delta Airlines, AT&T, and NASA.
• Robotics Expansion: Amazon is exploring the potential to commercialize its vast data from warehouse robots into industrial and consumer robotics solutions, hinting at future humanoid robot development.
• Capital Expenditure Justification: Jassy defended Amazon's commitment to spending $200 billion in 2026 on capital expenditures, primarily for AWS data centers. He cited significant customer agreements, including OpenAI's pledge to spend $100 billion on AWS, as evidence of the strategic necessity of this investment, especially in light of past stock performance.
• Addressing AI Hype: Jassy acknowledged the public debate around AI hype and potential bubbles but asserted that for Amazon, the investments are grounded in concrete demand and agreements.