Is Amazon Ready to Challenge NVIDIA? CEO Jassy's Letter Ignites Debate

Non-linear growth as a business paradigm and artificial intelligence as the main lever to redefine entire markets. These are the central themes of the letter to shareholders signed by Andy Jassy, CEO of Amazon, which outlines a strategic vision strongly oriented towards the long term, supported by unprecedented investments.

Jassy emphasizes how the most relevant development paths do not follow predictable trajectories, citing the evolution of AWS as a landmark example: from a platform initially limited to a few services to becoming one of the pillars of global digital infrastructure. This evolution is characterized by iterations, failures, and subsequent optimizations, which today is reflected in a highly diversified cloud ecosystem.

At the heart of the current strategy is artificial intelligence. Amazon views AI as a systemic transformation, destined to impact every customer experience and operational process. In this context, AWS positions itself as the reference platform for the development and implementation of AI solutions, with a growth rate surpassing that recorded in the early stages of cloud computing.

The most significant figure relates to the run rate of the AI business on AWS, which has already surpassed $15 billion in the first quarter of 2026, highlighting extremely rapid adoption. However, growth is constrained by available infrastructure capacity: Amazon is rapidly expanding data centers and energy capacity with the aim of doubling capacity by 2027.

This expansion translates into an imposing investment plan. For 2026, Amazon anticipates around $200 billion in capital expenditures, primarily aimed at cloud infrastructure. This amount exceeds that of many competitors, justified—according to Jassy—by agreements already signed with enterprise customers and the strong demand expected in the coming years.

Among the most relevant elements is the development of proprietary semiconductors. The Trainium chips, designed for the inference and training of AI models, represent an attempt to optimize the price-performance ratio compared to traditional solutions. While maintaining a partnership with NVIDIA, Amazon highlights the strong demand for alternative architectures, driven by the need to reduce operational costs.

The demand for these solutions is already high: the production capacity of the new generations of Trainium is nearly fully allocated, including that of products not yet available on the market. Meanwhile, the Graviton processors continue to gain ground, with widespread adoption among major AWS customers, marking another step towards technological independence.

Overall, the chip business has reached a run rate of over $20 billion, which could theoretically rise to about $50 billion if Amazon adopted a business model similar to that of traditional manufacturers. "The demand for our chips is so high that it is likely we will sell entire racks of chips to third parties in the future," stated the CEO.

In addition to AI, Amazon is investing in other strategic areas. Robotics represents a key component in logistics, with over a million robots already operating in distribution centers. The goal is to improve efficiency, reduce costs, and potentially develop commercial solutions for third parties.

On the connectivity front, the Amazon Leo satellite project aims to bridge the global digital divide. The low-orbit constellation, aimed for commercial launch in 2026, has already secured agreements with companies and institutions, suggesting a concrete demand for connectivity services integrated with the cloud.

At the same time, Amazon continues to develop new logistics models, including ultra-fast deliveries, drones, and micro-fulfillment centers. The approach is explicitly multi-strategy: instead of focusing on a single solution, the company invests in parallel paths to maximize the chances of success.

From a financial perspective, 2025 closed with revenues growing by 12% to $717 billion and a 17% increase in operating income. However, free cash flow underwent a significant contraction, primarily due to increased investments in infrastructure. Jassy acknowledges that this dynamic can generate short-term pressures, but reiterates the sustainability of the model in the long term. The goal is to build assets capable of generating high returns in subsequent years, even at the cost of temporarily sacrificing profitability.

Finally, the CEO dismissed concerns about a potential bubble in AI, stating that the adoption and impact of the technology are already evident. For Amazon, the priority remains consolidating a leadership position in a market set to expand rapidly.