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

Amazon CEO Andy Jassy annual shareholder newsletter it reads something like a Kendrick Lamar diss song, as if the rapper was a corporate talking head rather than a Pulitzer Prize-winning poet.

Meaning, you have to know the history to understand all of Jassy’s encounters, along with the beautiful stories of her dreams of becoming a professional athlete and watching hockey games with her father.

Of course, Jassy doesn’t throw the decision down directly. They take a more proactive approach. For example, in opposition to Nvidia, he writes, “We have a strong partnership with NVIDIA, we will have customers who choose to run NVIDIA” and will always support chips in its cloud.

But he also says: “Almost all AI up to now has been done on NVIDIA chips, but a new revolution has begun.” AWS customers, he says, “want cost effectiveness” referring to Amazon’s Trainium AI chips.

Jassy says demand for the device is so high that the new Trainium3 powertrain is almost sold out. Incredibly, this power is said to be on the verge of being sold to Trainium4, which is still 18 months away from being available.

This means Trainium has hit $20 billion in annual revenue. But if Amazon were a chipmaker that sold its products to others, it would be at $50 billion ARR, he says.

Of course, Nvidia they did $215.9 billion in real money last year. Nvidia may not be shaking in its boots, however. However, Jassy portrays Trainium as dangerous and alien.

Jassy didn’t leave Intel either. He added that AWS’s homegrown Graviton CPU, a competitor to Intel x86 architecture, “is now widely used by 98% of the top 1,000 EC2 customers,” which are some of the world’s largest enterprises. Two companies also requested to “buy everything of our Graviton energy in 2026,” he wrote (emphasis added).

He promised that Amazon Starlink’s competitor, Amazon Leo, which is expected to be launched in mid-2026 is also doing well. It has won contracts from Delta Airlines, AT&T, Vodafone, Australia’s National Broadband Network, NASA, among others.

Interestingly, he also suggested that Amazon might look into selling robots one day. It could transform everything from its 1 million warehouse robots into “robotic solutions” for industrial and consumer use, he wrote. Is there a humanoid Amazon in our future? We will see. He also talked about Amazon’s other businesses, such as same-day delivery, groceries, and drones.

But mostly, Jassy tried to give a case for the hundreds of billions of dollars he spent. In February, he announced plans to spend $200 billion in 2026 on capexespecially building AWS databases. That’s more than other big tech companies, which also spend a lot on capex. Jassy’s push for shareholders makes sense considering Amazon’s stock dropped to $200 a share and hasn’t recovered.

“We’re not investing nearly $200 billion in capex in 2026 for the event,” he wrote, using as an example that his actions with OpenAI include an app developer that pledged to spend $100 billion on AWS. Of course, there are those doubt OpenAI will fulfill all its financial promises.

Acknowledging this, Jassy insists that beyond OpenAI, “there are a number of other customer agreements that have been completed (and unannounced), or are in the works,” he plans to buy AWS power.

We will have to wait and see. The one who causes the bubble is not the one who sees (or acknowledges) its existence. “I have followed the public debate about whether this technology is a fantasy, whether we are in a ‘bubble.’