Amazon has for the first time published concrete figures on the AI business of its cloud division AWS. According to Golem, AI services are already generating an annual revenue of over 15 billion US dollars. CEO Andy Jassy stated this in his annual shareholder letter dated April 9, 2026. The figures are based on projections applying first-quarter 2026 results.
Amazon wants to reassure worried shareholders
Amazon is currently under massive pressure to justify its enormous AI investments to shareholders. The company announced investments of 200 billion US dollars in February 2026, intconcludeed primarily for AI development and infrastructure. Shareholders were in part highly critical of this sum. Jassy sought to counter the concerns: “For a significant portion of the AWS investments we are planning in 2026, which will largely pay off in 2027/28, we already have customer commitments in place.”
The company is accepting short-term fluctuations in free cash flow in order to generate substantial surplutilizes over the medium to long term. “We will not be conservative here — we are investing to take a leading role, and our future business, operating income, and free cash flow will be significantly higher as a result,” Jassy wrote.
Chip business growing rapidly
AI revenues at AWS are rising rapidly. The cloud business would be growing even rapider were it not for current capacity bottlenecks among suppliers, Jassy explained. At an internal employee town hall, the CEO reportedly stated, according to a Reuters report, that AI could double AWS’s annual revenue to 600 billion US dollars.
The custom chip business is generating annual revenue of over 20 billion US dollars, according to Jassy. It is growing at triple-digit rates year over year. Amazon is betting on Graviton processors, Trainium AI chips, and Nitro network cards to cut costs compared to Nvidia. Trainium is Amazon’s specialized chip for training AI models; Graviton processors are based on the ARM architecture. In parallel, Amazon deepened its partnership with Nvidia in March 2026. The deal involves the purchase of over one million Nvidia GPUs (Blackwell and Rubin architecture) by 2027.
Jassy pointed to the rapid growth of the custom chip business. He hinted that Amazon could sell the chips to external customers in the future. “Demand for our chips is so high that we will likely sell them in large quantities to third parties in the future,” Jassy stated.
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