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

Published: Thursday, April 9, 2026 at 2:27 pm

Amazon CEO's Shareholder Letter Signals Ambitious Expansion and Competition

Amazon CEO Andy Jassy's annual shareholder letter outlines the company's strategic direction, emphasizing its commitment to innovation and expansion across several key sectors. The letter, a detailed overview of Amazon's current and future endeavors, highlights the company's competitive stance against established tech giants.

A significant portion of the letter focuses on Amazon's in-house chip development. Jassy directly addresses Nvidia, acknowledging their partnership while simultaneously promoting Amazon's own Trainium AI chips. He states that demand for the newest Trainium3 chip is nearly at capacity, with the upcoming Trainium4 also nearing full allocation, despite being 18 months from launch. Jassy estimates that Trainium has reached a $20 billion annual revenue run rate, and could reach $50 billion if it were a chipmaker selling to other companies.

The letter also targets Intel, with Jassy pointing out the widespread adoption of Amazon's Graviton CPU, a direct competitor to Intel's x86 architecture. He notes that 98% of the top 1,000 EC2 customers are using Graviton. Jassy also mentions that Amazon's planned satellite internet service, Amazon Leo, is already securing contracts with major companies and organizations, including Delta Airlines, AT&T, and NASA, with a launch scheduled for mid-2026.

Beyond chips and internet, Jassy hints at potential future ventures, including the possibility of selling robotics solutions based on data from its warehouse robots. He also underscores Amazon's investments in same-day delivery, groceries, and drone technology.

The letter serves as a justification for Amazon's substantial capital expenditures, particularly the planned $200 billion investment in 2026, primarily for building out AWS data centers. Jassy cites agreements with companies like OpenAI as evidence of the demand for AWS capacity, while acknowledging the ongoing debate about the potential for a tech bubble. He asserts that, for Amazon, this is not the case.

BNN's Perspective:

Jassy's letter paints a picture of an Amazon aggressively pursuing growth and innovation. While the company's ambitions are clear, the scale of its planned investments raises questions about the sustainability of such rapid expansion, especially given the current economic climate. The success of Amazon's in-house chip development and its satellite internet service will be crucial in determining the company's future trajectory.

Keywords: Amazon, Andy Jassy, Shareholder Letter, Nvidia, Trainium, Intel, Graviton, AWS, Amazon Leo, Capital Expenditures, AI Chips, Cloud Computing, Robotics, OpenAI, Data Centers, Tech Bubble

Full Story