For years, Amazon played the long game—ask investors for patience, keep the spending high, and promise that the payoff is just around the corner. It was a cycle of ‘trust the process’ that sometimes felt like it would never end. I remember sitting in a coffee shop last week, hearing the grinding of the espresso machine while reading Andy Jassy’s latest shareholder letter, and the tone—it’s just different this time. He’s stopped asking for patience and started showing receipts.
Jassy’s letter, published April 9, finally drops the hard numbers everyone was hunting for. The AWS AI revenue run rate is now sitting north of $15 billion as of Q1 2026. That is a massive milestone, and honestly, it’s the kind of transparency that makes the market sit up and take notice. Misryoum reported that the stock moved higher following the news, which makes sense—investors hate vague promises, but they love a concrete anchor.
It’s not just the AI software side, either. The chip business, covering Graviton, Trainium, and Nitro, is now pulling in an annual run rate of over $20 billion. That’s triple-digit growth. Jassy even went as far as to say that if Amazon sold these chips externally like Nvidia, it would be a $50 billion business. Actually, wait—he said the standalone value would be that high. It’s wild how quickly these things scale.
Demand is, well, intense. Trainium3 is almost entirely sold out, and they’re already seeing massive reservations for Trainium4, even though it’s 18 months out. Customers are practically begging for capacity. Or maybe they’re just desperate for compute. Either way, the supply chain is feeling the heat, as noted in Misryoum reports on power capacity expansion.
Then there’s the $200 billion capex question for 2026. Jassy’s response? It’s not a hunch. With a $100 billion-plus commitment from OpenAI backing the play, he’s betting big on this being a once-in-a-lifetime shift. It’s a bold move, maybe even a bit reckless to some, but Jassy is doubling down on the infrastructure.
Analysts at Jefferies seem convinced, sticking to a $300 price target. It doesn’t mean the spending cycle is over—far from it—but it feels like the payoff phase is finally creeping into view. The company is still in the middle of all this noise, but at least now there’s a map.