For years, Amazon has asked Wall Street to be patient. The spending is heavy, the timeline is long, and the payoff is coming. Trust the process.
Andy Jassy‘s annual shareholder letter, published April 9, reads differently. This time, he is not asking for patience. He is showing receipts.
In the letter, Jassy put hard numbers around Amazon’s AI and chip businesses for the first time, and the market responded by pushing the stock higher, CNBC noted. The numbers are large enough that investors who had been waiting for proof now have something concrete to work with.
What Jassy revealed about AWS AI revenue
The most important takeaway from Jassy’s letter is that AWS’s AI revenue run rate is now above $15 billion as of Q1 2026.
That is a major milestone. It is also the first time Amazon has disclosed this figure. It gives investors a concrete number instead of a vague promise about future AI potential.
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For context, AWS’s total annualized revenue run rate stands at approximately $142 billion, according to CNBC. That means AI services already represent roughly 10% of the entire AWS business. The numbers are “ascending rapidly,” Jassy said, according to Storyboard18.
Demand is outpacing supply. AWS added 3.9 gigawatts of new power capacity in 2025 and expects to double its total power capacity by the end of 2027, but some customers are still unable to get the compute they want, Converge Digest indicated.
What Jassy said about Amazon’s chip business
Jassy also disclosed that Amazon’s chip business, including Graviton, Trainium, and Nitro, now has an annual revenue run rate above $20 billion, growing at triple-digit rates year-over-year. That figure doubled from Q4 2025, Mobile World Live reported.
“Our chips business is on fire,” Jassy wrote, adding that it “changes the economics for AWS, and will be much larger than most think.”
The chip demand picture is striking. Trainium2 has largely sold out. Trainium3, which started shipping in early 2026, is nearly fully subscribed. Trainium4, still about 18 months from broad availability, has already been significantly reserved.
Two large customers asked to buy all of Amazon’s available Graviton chip capacity for 2026, according to GeekWire. And Graviton is now used by 98% of the top 1,000 EC2 customers, TechCrunch reported.
Jassy also argued that if Amazon sold its chips externally the way Nvidia does, the business would be running at roughly $50 billion in annual revenue.
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Why Amazon is spending $200 billion and why Jassy says it is not a gamble
Amazon has said it plans to spend approximately $200 billion in capital expenditures in 2026, mostly tied to AI, chips, and infrastructure. “We’re not investing approximately $200 billion in capex in 2026 on a hunch,” Jassy wrote, according to CNBC.
His case rests on customer commitments. Jassy said existing commitments cover “a substantial portion” of the capex spend and that Amazon expects to monetize most of it in 2027 and 2028, per CNBC. Among those commitments is a deal with OpenAI worth more than $100 billion, Quartz confirmed.
“We’re not going to be conservative in how we play this,” Jassy wrote. “AI is a once-in-a-lifetime opportunity where the current growth is unprecedented and the future growth even bigger,” according to Storyboard18.
Key figures from Jassy’s shareholder letter:
- AWS AI revenue run rate Q1 2026: Above $15 billion
- AWS total annualized revenue run rate: Approximately $142 billion
- Chip business (Graviton, Trainium, Nitro) run rate: More than $20 billion, representing triple-digit growth
- Chip business standalone value if sold externally: Approximately $50 billion
- Amazon 2026 capex: About $200 billion
- OpenAI commitment to AWS: More than $100 billion
- Trainium3: Nearly fully subscribed; Trainium4 already significantly reserved
What it means for Amazon stock
Analysts at Jefferies said the letter made them more constructive on Amazon, reiterating a buy rating and $300 price target. They noted that Trainium and Graviton are becoming a “structural advantage” for AWS, Proactive Investors reported.
For Amazon stock, this is the kind of update that can change sentiment, even if it does not instantly change the income statement. Investors often reward clarity, and Jassy’s letter gave them a clearer picture of where Amazon is already monetizing AI.
The company may still be in the middle of a heavy spending cycle. But Jassy just made a much stronger case that the payoff is already beginning.
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