— We’re not investing approximately $200 billion in capex in 2026 on a hunch, he writes according to CNBC. — 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 [cash flow] will be much larger because of it, he continues.
There are already deals incoming to support this claim, he writes, noting a $100 billion commitment from OpenAI for AI compute on their server farms.
AI server use at Amazon’s cloud unit has reached more than $15 billion in annualized revenue, Jassy writes, and now represents about 10% of the total for AWS, Reuters reports.
Read more: The shareholder letter (long), writeups on CNBC and Reuters.