Amazon CEO Andy Jassy released the annual shareholder letter.
• AWS AI revenue is running above $15 Billion annually
• Amazon expects around $200 Billion of 2026 capex mostly tied to AI infra
• Project Leo already has 200+ satellites in orbit ahead of launch.
• $4 Billion+ is going toward rural delivery expansion while 1 Million+ robots are now deployed across fulfillment.
• Grocery gross sales surpassed $150B in 2025.
• Graviton, Trainium & Nitro are now at a $20 Billion+ run rate with multiple Trainium generations already heavily reserved
OpenAI and Anthropic have revenue run rates reportedly approaching $30 billion.
Three years after AWS launched commercially, it had a $58 million revenue run rate. Three years into this AI wave, AWS’s AI revenue run rate is over $15 billion in Q1 2026 (nearly 260 times larger than AWS at that same point)—and ascending rapidly.
AWS could be growing even faster. AWS added 3.9 gigawatts (“GW”) of new power capacity in 2025, expects to double total power capacity by the end of 2027, and is monetizing that capacity as fast as it’s installed. In Q4 2025, AWS reported 24% YoY growth with a $142 billion dollar revenue run rate.
Amazon chips business is on fire, changes the economics for AWS, and will be much larger than most think. Virtually all AI thus far has been done on NVIDIA chips, but a new shift has started. 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. We’ve seen this movie before. In the CPU space, virtually all of the workloads ran on Intel chips until we invented Graviton in 2018. Graviton, which has up to 40% better price-performance than other x86 processors, is now used expansively by 98% of the top 1,000 EC2 customers. The same story arc is unfolding in AI. Our second version of our custom AI silicon (Trainium2) had about 30% better price-performance than comparable GPUs, and has largely sold out. Trainium3, which just started shipping at the start of 2026 and is 30-40% more price-performant than Trainium2, is nearly fully-subscribed. A significant chunk of Trainium4, which is still about 18 months from broad availability, has already been reserved. And, Amazon Bedrock, AWS’s primary (and very fast-growing) inference service, runs most of its inference on Trainium. Demand for Trainium is booming.
Amazon expects Trainium will save Amazon 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 annual revenue run rate for Amazon chips business (inclusive of Graviton, Trainium, and Nitro—our EC2 NIC) is now over $20 billion, and growing triple digit percentages YoY. To dimensionalize this versus other chips companies, that run rate is somewhat understated by our currently only monetizing the chips through EC2. If our chips business was a stand-alone business, and sold chips produced this year to AWS and other third parties (as other leading chips companies do), the annual run rate would be ~$50 billion.
The way AWS’s cash cycle works is that the faster AWS grows, the more short-term capex they will spend. AWS has to lay out cash for land, power, buildings, chips, servers, and networking gear in advance of when we can monetize it (typically 6-24 months before they start billing customers, depending on the component). However, these capex investments fund assets with many-year useful lives (30+ years for datacenters. 5-6 years for chips, servers, and networking gear).
Amazon had another strong year in 2025
Amazon’s revenue in 2025 grew 12% year-over-year (“YoY”) from $638 billion to $717 billion. By segment, North America revenue increased 10% YoY from $387 billion to $426 billion, International revenue grew 13% YoY from $143 billion to $162 billion, and AWS revenue increased 20% YoY, from $108 billion to $129 billion.
Amazon’s operating income in 2025 improved 17% YoY, from $69 billion (an operating margin of 10.8%) to $80 billion (an operating margin of 11.2%).
Free Cash Flow decreased from $38 billion to $11 billion, driven primarily by a year-over-year increase of $50.7 billion in purchases of property and equipment, net of proceeds from sales and incentives. This FCF change primarily reflects capex investments in artificial intelligence.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.
