Amazon CEO Andy Jassy has outlined his view of the future of artificial intelligence at 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 in the future will be with AI.
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“We have never seen a technology that is more quickly adopted than AI”
Well, for starters – Jassy certainly doesn’t believe that the hype surrounding AI is being blown out of proportion.
“Every customer experience will be reinvented by AI, and there will be a series of new experiences only possible because of AI,” he notes.
“I’ve been following the public debate about whether this technology is overhyped, whether we’re in ‘a bubble’, and whether the margins and ROIC will be appealing. My strong belief, at least for Amazon, is that the answers are no, no and yes.”
Jassy goes on to state, “we’ve never seen a technology adopt faster than AI,” giving the example of ChatGPT’s rapid growth over the past few years, comparing it to Edison’s launch of the first commercial power plant in 1882, and the unseen potential this had for everyday consumers.
“AI can have comparable impact,” says Jassy. “The difference is that electricity took 40 years to get where it was going. AI seems to be moving ten times faster.”
“Amazon is right in the middle of this land rush”
Fortunately, Amazon (mainly through AWS) is well positioned to provide your business with everything you need to adopt AI.
Jassy notes the astonishing growth and success of AWS, which he claims now has an AI revenue rate of over $15 billion in Q1 2026 (nearly 260 times what AWS was at the same point in its lifetime) – and this is growing “rapidly”.
Jassy says AWS offers broader capabilities than competitors, along with a global network that means customers’ conclusions can remain as local as possible, and a broad and capable ecosystem of integration 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 notice the performance benefits of AWS as they increasingly move their AI to AWS,” he notes.
“AWS could grow even faster”
Despite the tremendous growth at AWS, Jassy (who previously held the top job at the company) notes how it could still expand even further.
He notes how AWS reported 24% year-over-year growth at a revenue pace of $142 billion in its fourth quarter 2025, and how, even though 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 unserved demand,” noting how customers are demanding more and more compute as AI demands increase.
“Our chip shop is on fire”
Since the launch of Graviton in 2018, AWS’s chip business has grown tremendously, with 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 forward, as the company looks to offer an alternative to the status quo in the AI market, where he notes, “pretty much all AI so far has been done on Nvidia chips.”
“A new shift has begun,” says Jassy. “We have a strong partnership with Nvidia, will always have customers who choose to run Nvidia, and will continue to make AWS the best place to run Nvidia. However, customers want better price-performance.”
He compares the state of affairs to when Intel dominated the CPU space, noting that “demand for Trainium is booming.”
“Having our own high-demand AI chip opens up many opportunities, but perhaps none greater than the ability to lower costs for customers and ensure better economics for AWS. At scale, we expect Trainium to save us tens of billions of capex dollars per year, and provide hundreds of basis points of operating margin advantage over relying on someone else’s end-to-end chips.”
“The way AWS’s money cycle works is that the faster AWS grows, the more short-term capital we will use”
Jassy’s truths get into the complex financial weeds a bit as he delves into AWS’s cash cycle as a way to demonstrate “how much short-term capital we’re going to use”.
The TL:DR of this is that having short-term capex allows AWS (and Amazon) to quickly spend and invest in “land, power, buildings, chips, servers, and network equipment” before the company is able to monetize it – all of which means it can quickly raise future new investments, ensuring (probably) more success.
Or as Jassy puts it – “We’ve been through this cycle with the first big wave of AWS growth, and liked the results.”
“Once in a Lifetime Opportunity”
Finally, looking ahead, 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.
Excitingly, he also mentions “several other customer agreements that have been completed (and unannounced), or deep in the process” – so we may hear more about that soon.
“AI is a once-in-a-lifetime opportunity, where the current growth is unprecedented and the future growth even greater,” concludes Jassy.
“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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