Amazon CEO Andy Jassy published his annual letter to shareholders, in which he painted a picture of Amazon as a company deliberately pursuing multiple parallel bets across AI, logistics, and new technologies rather than chasing a single straight line to growth.
Highlights from this year's letter include:
- $200B in 2026 capex is not a “hunch.” Jassy defended the company's massive infrastructure spend by pointing to concrete customer commitments to justify the expenditure, including a deal with OpenAI worth more than $100B, as well as other agreements that are either signed or in negotiation.
- Amazon is simultaneously investing in and competing with the AI models it hosts. AWS has invested $8B in Anthropic and $50B in OpenAI while also building its own competing Trainium chips and Bedrock inference platform, which is a dynamic Jassy has previously defended as consistent with Amazon's long-standing practice of partnering with companies it also competes against.
- AWS AI revenue is already at $15B annually. Three years into the current AI wave, AWS's AI business is running at over $15B in annualized revenue in Q1 2026, roughly 260x larger than AWS's total revenue run rate at the same point in its history.
- Amazon's chips are threatening Nvidia's dominance. Trainium2 offered about 30% better price-performance than comparable GPUs and has largely sold out. The company just started shipping Trainium3 and is nearly fully subscribed, while Trainium4 already has significant pre-orders.
- The chips business could be worth $50B if sold externally. Amazon's chip lines currently generate over $20B in annualized revenue, but Jassy estimates that figure would be roughly $50B if sold on the open market the way standalone chipmakers do. On that note, Jassy said that demand for Trainium is so strong that “it's quite possible we'll sell racks of them to third parties in the future.”
- Amazon Leo satellite internet is launching in mid-2026. The low Earth orbit satellite network, which already has more than 200 satellites in space, has signed up customers including Delta Air Lines, JetBlue, AT&T, Vodafone, and NASA ahead of its commercial launch.
- Amazon is now the second-largest grocer in the U.S. Grocery gross sales hit over $150B in 2025, with perishable same-day delivery available in over 2,300 cities and fresh food now making up nine of the top ten most-ordered same-day items where available.
- Prime Air drone delivery is scaling fast. The drone program now has a design that can scale, plans to serve communities with 30 million customers by year-end, and targets half a billion deliveries by end of the decade with a 30-minute delivery window.
- Amazon Now ultra-fast delivery is expanding to the U.S. and Europe. Launched in India and the UAE, the 20-minute delivery service has more than 360 micro-fulfillment centers in India where orders are growing 25% month-over-month, with Prime members tripling their shopping frequency after first use.
- Alexa got a complete makeover. The new Alexa+ was rebuilt from scratch around generative AI, and customers are now talking to Alexa twice as much, completing purchases on devices three times more, and using smart home features 50% more.
- Amazon's retail business is approaching $600B in annual sales. However, despite that scale, Jassy notes that roughly 80% of global retail still happens in physical stores, which he sees as a massive untapped opportunity.
- Amazon now has over one million robots in its fulfillment centers. The company's robotics program is handling stowing, picking, sorting, and transport, and Jassy hinted at plans to sell robotics solutions to other industrial and consumer customers.
- Overall revenue grew 12% to $717B in 2025. AWS grew 20% to $129B, North America grew 10% to $426B, and International grew 13% to $162B, with operating income up 17% to $80B, though free cash flow dropped from $38B to $11B due to AI infrastructure spending.
- Jassy invested $4B to expand rural delivery. Monthly same-day customers in rural areas nearly doubled in 2025, and once complete the network will reach over 13,000 zip codes covering 1.2M square miles.
Honestly, Amazon is crushing it right now. Who else wishes they had bought more AMZN in early 2023?