Amazon CEO says customers are shifting to Amazon-made AI and CPU chips

In short: Amazon CEO Andy Jassy used his annual shareholder letter to defend a planned $200 billion spend and to highlight Amazon’s own chips and other projects.

What happened

Andy Jassy, Amazon’s CEO, published his annual letter to shareholders. He argued that Amazon’s heavy spending in 2026, mainly to build more AWS data centers (big buildings filled with computers that run online services), is based on customer demand, not a guess.

A big part of the letter focused on computer chips, which are the “engines” that power modern software. Jassy said most AI work so far has run on Nvidia chips, but he claimed customers now want better value and are turning to Amazon’s in-house AI chips called Trainium. He said capacity for the newest version, Trainium3, is nearly sold out, and that capacity is also nearly sold out for Trainium4 even though it is about 18 months away.

Jassy also promoted Amazon’s Graviton chip, which competes with Intel-style server chips. He wrote that 98% of AWS’s top 1,000 EC2 customers use Graviton widely, and that two customers asked to buy all of Amazon’s Graviton capacity for 2026.

Beyond chips, Jassy pointed to Amazon’s planned Starlink competitor, which he called Amazon Leo, saying it has already won contracts with Delta Air Lines, AT&T, Vodafone, Australia’s National Broadband Network, and NASA. He also suggested Amazon could eventually sell robotics products based on what it learns from operating about 1 million warehouse robots.

Why it matters

This is Amazon signaling that it wants to rely less on outside suppliers like Nvidia and Intel, and sell more of its own “building blocks” for AI and cloud computing. If Amazon succeeds, it could affect prices and availability for businesses that rent computing power through AWS, and it could reshape who profits most from the AI boom.

Source: TechCrunch AI