Amazon CEO Jassy's 2025 shareholder letter: The big takeaways

Amazon CEO Andy Jassy penned his 2025 shareholder and outlined why the company is betting so heavily on AI, how its chip business changes AWS economics and the big picture.

Here's a look at the takeaways from Jassy's annual missive.

The business

• AWS' AI revenue hit a $15 billion annual run rate in the first quarter. AI demand is pulling along other AWS services that enable AI.
• Amazon will spend about $200 billion on capital expenditures in 2026. AWS can monetize capacity as soon as it comes online.
• "Two large AWS customers have already asked if they could buy *all* of our Graviton instance capacity in 2026," said Jassy.
• The chips business is changing the economics for AWS. Graviton and Trainium are nearly fully subscribed. "Having our own hotly demanded AI chip opens up many possibilities, but perhaps none larger than the ability to lower costs for customers and secure better economics for AWS. At scale, we expect Trainium will save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others’ chips for inference," said Jassy.
• AWS' annual revenue run rate for its chips business now tops $20 billion. If AWS sold its chips to AWS and other third parties, the annual revenue run rate would be $50 billion. "There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future," said Jassy,
• The company's Leo space internet service will launch in mid-2026. "Apart from enabling this connectivity, Leo will offer three unique benefits. First, the performance will be stronger (about six to eight times better on uplink, and two times better on downlink) than what customers have access to now. Second, this performance will come at a lower cost than alternatives. And third, Leo will seamlessly integrate with AWS to enable enterprises and governments to move data back and forth for storage, analytics, and AI," said Jassy.
• Robotics are scaling throughout the company. Jassy noted how Amazon acquired Kiva in 2012 and has been scaling robotics ever since and has built a feedback loop to develop robots further. "While the above progress is substantial, we’re still in the early stages of how we’ll leverage robotics. Expect us to keep innovating on form factors, use case diversity, agility, grasping, and intelligence. And, wherever we can leverage our scale and real-time feedback loop from so many robots in our fulfillment network to build robotics solutions for other industrial and consumer customers, we’ll explore doing so," said Jassy.

Big picture

Pursuing two paths to innovation is better than one. Jassy said same-day delivery, drone delivery and grocery are all examples of where Amazon has pursued parallel paths when it was unclear how markets would develop. "If there’s an obvious path to changing your trajectory, take it and run. But, most new jumps forward aren’t like that. There are invention and experimentation required, and pursuing multiple paths gives you the best chance to find it," said Jassy.

Bet big when you see inflection points. Simply put, "game-changes don't typically accommodate smoother investment horizons," said Jassy. AI is one of those generational inflection points.

Take the short-term hit for a long-term investment win. "We’re not going to be conservative in how we play this—we’re investing to be the meaningful leader, and our future business, operating income, and FCF will be much larger because of it," said Jassy.

Don't be afraid to start over. "When you have a product that’s working at scale, one of the hardest decisions to make is to go back to the starting line. It feels like going backwards (because it kind of is). Teams understandably argue that they don’t have time to both run the existing service and reimagine everything anew. But there are reasons to do so, and AI is making it easier and more imperative to go back to the starting line," said Jassy, who noted Amazon Bedrock got a new inference engine and Alexa had to be revamped.