Jassy: AWS AI Revenue Hits $15B Run Rate, Chip Unit $20B+
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- Andy Jassy published his 2025 annual shareholder letter on April 9, 2026, reporting that AWS's AI revenue annual run rate reached $15 billion in Q1, per Reuters and the company.
- Amazon's internal chip business is now generating over $20 billion per year, according to Jassy's letter, with Jassy telling shareholders it could be worth $50 billion (per The Next Web and Blockonomi).
- Amazon is considering selling its Trainium AI chips to customers outside AWS, a move Yahoo Finance noted 'raises stakes for Nvidia, AMD' and Quartz framed as 'taking a shot at Nvidia.'
- Amazon's stock posted its biggest gain in more than five months following the letter's release, per Barron's, as Jassy defended the company's roughly $200 billion AI spending plan.
- Jassy's letter explicitly targeted multiple competitors, with TechCrunch's headline noting it 'takes aim at Nvidia, Intel, Starlink, more.'
- AWS's AI growth was highlighted as justification for Amazon's aggressive capex, with CIO Dive reporting the CEO 'makes a case for aggressive AI spending spree' amid bubble concerns.
Why it matters: Amazon is positioning its Trainium chip business as a direct rival to Nvidia and AMD in the AI accelerator market, with Jassy floating $50B potential and external sales. The 5+-month stock gain suggests Wall Street accepted the vertical-integration thesis: the same letter that reported a $15B AWS AI run rate effectively rebranded Amazon as both a cloud provider and a chipmaker competing with Nvidia's core market.
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