Amazon's AI Revenue Is Already Bigger Than Most Companies
Andy Jassy disclosed in his annual shareholder letter that Amazon’s AI services at AWS are running at a $15 billion annual revenue rate. He also revealed that the company’s custom chip business — Graviton and Trainium — has crossed a $20 billion annualized run rate, roughly double what the company cited earlier this year.
Amazon stock jumped more than 5% on the news. The S&P closed at 6,824 and the Nasdaq at 22,822 on Thursday as the letter gave investors a concrete number to attach to years of capital expenditure narrative.
The more interesting line in the letter was the justification for the spending: “Of the AWS capex we expect to spend in 2026, much of which will be monetized in 2027-2028, we already have customer commitments for a substantial portion of it.” That’s not a vision statement. That’s a backlog.
The market has spent a year asking when AI infrastructure spending would translate to revenue. Amazon is saying the answer is now, and it’s showing receipts. The question for competitors is whether they can say the same.