Amazon CEO takes aim at Nvidia, Intel, Starlink, more in annual shareholder letter

In his annual letter to shareholders, Amazon CEO Andy Jassy delivers a bold message, taking aim at industry giants like Nvidia, Intel, and even SpaceX's Starlink. Using a mix of personal anecdotes and strategic insights, Jassy highlights Amazon's competitive edge and future ambitions. Jassy emphasizes the strong partnership with Nvidia while subtly hinting at the growing demand for Amazon's proprietary Trainium AI chips. Although he acknowledges that most AI applications currently run on Nvidia technology, he suggests a shift is underway as AWS customers seek better price-performance options. He notes that the latest Trainium chip, Trainium3, is nearly sold out, and demand for Trainium4, which won’t be available for another 18 months, is also high. This surge has pushed Trainium's annual revenue run rate to an impressive $20 billion, with potential projections reaching $50 billion if Amazon were to sell its chips to external clients. Jassy also addresses Intel, stating that Amazon's Graviton CPU is gaining traction, now utilized by 98% of the top 1,000 EC2 users. He reveals that two major clients wish to purchase all available Graviton instance capacity in 2026, underscoring the strong demand for this technology. Looking ahead, Jassy mentions Amazon's upcoming satellite internet service, Amazon Leo, set to launch in mid-2026, which has already secured contracts with major companies like Delta Airlines and NASA. Moreover, he hints at a possible future in robotics, suggesting that Amazon might leverage its warehouse robots to create industrial and consumer solutions. Jassy also reflects on other Amazon ventures, including same-day delivery and drone services, while justifying the company's significant capital investments. He announced plans for a staggering $200 billion in capital expenditures by 2026, primarily for expanding AWS data centers, surpassing investments from other tech giants. In the face of Amazon's stock struggles, trading below $200 per share, Jassy assures shareholders that the company's investments are based on solid partnerships, notably with OpenAI, which has committed to spending $100 billion on AWS. He acknowledges skepticism surrounding OpenAI's spending but insists that multiple customer agreements are in the works. As discussions about a potential tech bubble continue, Jassy stands firm, declaring that Amazon's investments in technology are grounded in reality, not hype.