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

Key Points:

• Amazon CEO Andy Jassy’s annual shareholder letter highlights competitive challenges to Nvidia and Intel, emphasizing Amazon's homegrown Trainium AI chips and Graviton CPUs as strong alternatives gaining significant market traction.
• Demand for Amazon’s Trainium AI chips is exceptionally high, with capacity for the upcoming Trainium3 nearly sold out and Trainium4, still 18 months away, also close to full capacity, projecting a $20 billion annual revenue run rate.
• Jassy revealed Amazon’s upcoming satellite internet service, Amazon Leo, set to launch in mid-2026, has already secured contracts with major clients including Delta Airlines, AT&T, Vodafone, and NASA.
• Amazon is exploring potential new business avenues such as robotics solutions derived from data collected by its warehouse robots, alongside ongoing investments in same-day delivery, groceries, and drone services.
• The letter justifies Amazon’s planned $200 billion capital expenditure in 2026, mainly for AWS data centers, supported by major customer commitments like OpenAI’s pledge to spend $100 billion on AWS, countering concerns about potential overhype or a tech bubble.