Andy Jassy

“There is not one tool to rule the world, and they want choice.”

“Most of the value companies derive from AI will be through agents.”

“And normally, that would have taken 40 or 50 people about a year to do, and we took 5 really smart people, AI forward-thinking people building on agentic coding tools and those 5 people rebuilt it in 65 days.”

“On the use of AI internally and for our current businesses, I think that the shortest first summary I could give you, Colin, is that I do not see a place in any of our businesses or any of the ways that we do work where we're not going to have giant impact on what we do.”

“If our chips business was a stand-alone business and sold chips produced this year to AWS and other third parties as other leading chip companies do, our annual revenue run rate would be $50 billion.”

“One of the interesting things that we see right now with the change in price and in supply on things like memory is that it is a further impetus pushing companies who have on-premises infrastructure into the cloud.”

“And there are so many new applications that none of us have ever imagined or dreamed we could build that are starting to be built and will be built.”

“We've never seen a technology grow as rapidly as AI.”

“Like that is a very different world of operating.”

“There are billions of people around the world who do not have access to broadband connectivity.”

“Our plan is largely the same, but we do view this as truly a once-in-a-lifetime opportunity where every application that we know of is going to be reinvented.”

“And with more than $150 billion in gross sales in 2025, we're now the second largest grocer in the U.S.”

“As I've said before, the largest absolute place that we see enterprises having success is in projects that are around cost avoidance and productivities.”

“And I think it has some characteristics that are reminiscent of AWS in that it's capital-intensive upfront where you're committing a lot of capital and cash in the early years for assets that you get to leverage over a long period of time.”

“And then at the same time, we're seeing very significant growth in our core business.”

“We already have meaningful revenue commitments from enterprises and governments, including Delta Airlines, JetBlue, AT&T, Vodafone, DIRECTV Latin America, Australia's National Broadband Network, DP World Tour, NASA and others.”

“I mentioned in my letter, but if you look at one of our services, we swapped out the engine of the service while we are also running the service full tilt.”

“However, these CapEx investments fund assets with many year useful lives, 30-plus years for data centers, 5 to 6 years for chips, servers and networking gear.”

“Monthly active users are up over 115% and engagement is up nearly 400% year-over-year.”

“It's always been true and always will be true.”

“And we now have over $225 billion in revenue commitments for Trainium.”

“And while I think there will continue to be lots of work done that way, I think the future of using these models is a stateful model, a stateful API.”

“And so increasingly, we see very large demand for consumers to have direct-to-device.”

“The service is now available to tens of millions of customers across 9 countries with more to come as well.”

“In live sports, we offered exclusive coverage of the NBA SoFi Play-In Tournament with total viewership up 18% compared to last year on cable.”

“Units grew 15% year-over-year, the highest we've seen since the tail end of COVID lockdowns.”

“And the models that they're building and the companies that have successful generative AI applications are certainly spending a lot.”

“We offer perishables delivered same day alongside millions of other items in more than 2,300 cities and towns across the U.S. with more to come.”

“Rufus can research products, track prices and auto buy products in our store when they reach a set price.”

“And we continue to expand our ultra-fast delivery service, Amazon Now, which offers delivery in 30 minutes or less on thousands of items.”

“But a lot of that is also as AI growth is exploding, it turns out that it leads to a lot of core growth as well.”

“And in that process of having multi turns, there are multiple opportunities to surface relevant products to customers, many of which will be organic and some of which will be sponsored.”

“Graviton is our industry-leading CPU chip, which allows Meta to run the CPU-intensive workloads behind agentic AI with the performance and efficiency they need at their scale.”

“Amazon Bedrock, which is used expansively by over 125,000 customers, runs most of its inference on Trainium and almost 80% of the Fortune 100 companies are using Bedrock.”

“And much of Trainium4, which is still about 18 months from broad availability has already been reserved.”

“We have over 30 launches planned in 2027.”

“It's early, but the initial response and feedback are very strong.”

“Our grocery business continues to grow quickly across both perishables and nonperishables.”

“On the question about Trainium and the notion of our selling racks over time, I do think that's very much a possibility.”

“Of the AWS CapEx we intend to spend in 2026, much of which will be installed in future years, we have high confidence this will be monetized well as we already have customer commitments for a substantial portion of it and that it will yield compelling operating margins and ROIC.”

“I think it's going to be good for customers, and it's going to be good for our business.”

“Fourth, AWS is the strongest security and operational performance of any AI and infrastructure provider and start-ups, enterprises and governments continue to choose AWS as the foundation for their most critical workloads.”

“Whole Foods Market also continues to accelerate with over 550 stores today and 100 more coming in the next few years.”

“We're excited to make OpenAI's models available in Bedrock.”

“Zoox has now driven nearly 2 million miles and carried more than 350,000 riders, is available to the public in Las Vegas and San Francisco and is testing in 8 other cities.”

“We're also making delivery even faster, recently announcing 1 and 3-hour delivery options on over 90,000 items with 1-hour delivery available in hundreds of cities and towns, 3-hour delivery in 2,000-plus cities and towns and more on the way.”

“Its opening weekend was the second biggest for any non-sequel, non-franchise film in the last decade.”

“In the first 3 years of this AI wave, AWS' AI revenue run rate is over $15 billion, nearly 260x larger.”

“We're reporting $181.5 billion in revenue, up 17% year-over-year.”

“So I actually believe that advertising will do well in a world of agentic commerce.”

“Prime members are loving the convenience of getting fresh groceries alongside other products they're buying on Amazon, and perishable sales have grown over 40x year-over-year and make up 9 of the top 10 most ordered items for same-day delivery where the service is available.”

“AWS is now a $150 billion annualized revenue run rate business.”

“On the backlog, the backlog for Q1 is $364 billion.”

“As AI systems shift from answering questions to taking actions and as post-training and inference scale up, the compute required pulls heavily on CPUs.”

“And that was really the impetus for our acquisition of Globalstar.”

“Trainium3, which just started shipping at the start of 2026 and is 30% to 40% more price performance than Trainium2 is nearly fully subscribed.”

“AI is commonly seen as a GPU story, but the rise of agentic workloads, real-time reasoning, code generation, reinforcement learning and multistep task orchestration is driving massive CPU demand as well.”

“We continue working to be the best place for brands of all sizes to grow their businesses, and we're pleased with the continued strong growth across our full funnel offerings, generating $17.2 billion of revenue in the quarter and up 22% year-over-year.”

“But we also see quite a bit of enterprise adoption and usage of AI.”

“Our Trainium2 chip has about 30% better price performance than comparable GPUs and is largely sold out.”

“I think we'll be about 2x better on the downlink than existing alternatives and about 6x better on the uplink performance than existing alternatives.”

“Yesterday, we also started the preview of Amazon Bedrock managed agents powered by OpenAI, the Stateful Runtime Environment that enables any organization to build generative AI applications and agents at production scale.”

“It started last year in India, where orders are increasing 25% month-over-month with Prime members tripling their shopping frequency once they start using it.”

“And most of the model work and most of the AI has been done in these stateless models, kind of tokens in and tokens out.”

“And the last time we saw growth at this clip, AWS was roughly half the size.”

“So I think it's a big deal for customers, and I think it's going to be good for our business as well.”

“It's true in chips, too, by the way, is that customers want choice.”

“That's why Meta chose Graviton, which delivers up to 40% better price performance than any other x86 processors and now used by 98% of the top 1,000 EC2 customers.”

“We just enabled yesterday the stateless model, the 5.4 model, and we'll enable the most recent 5.5 model in the next couple of weeks.”

“There are several reasons customers are choosing AWS for AI.”

“I think we've done a good job in making sure that we're not capacity constrained there, but we're watching that very closely.”

“To put our growth in perspective, 3 years after AWS launched, it had a $58 million revenue run rate.”

“Customers always want choice.”

“But if you're not actually working on inventing those right now, I think it's going to be very hard to have the business and the experience leadership that we want over a long period of time.”

“You can easily keep refining your preferences and Quick's advanced knowledge graph enables its AI agents to automatically learn from your interactions to become more personalized over time.”

“Starting with AWS, growth continued to accelerate, up 28% year-over-year, the fastest growth rate in 15 quarters, up $2 billion quarter-over-quarter, the largest Q4 to Q1 AWS revenue increase ever.”

“It means that we're really unusually well positioned for the inflection that we're seeing and the type of growth that we're experiencing.”

“Customers shopping same-day perishables build larger baskets, adding nearly 3x as many items to their order and spend over 80% more than customers who don't.”

“In AWS customers can build agents with their proprietary data and strands, which has been downloaded more than 25 million times and saw 3x more downloads quarter-over-quarter.”

“We deepened our Netflix partnership with Amazon Audiences, which enables advertisers to apply Amazon's exclusive signals from shopping, browsing and streaming to Netflix's highly engaged viewers to reach the right audiences and drive even stronger performance.”

“That does not include the recent deal that we announced with Anthropic for over $100 billion.”

“I think it's going to have a comparable impact on how we do DevOps and how we do customer service, how we do research, how we do analytics, how sales is conducted.”

“We continue to find new ways to speed up delivery for customers in both cities and rural areas.”

“Customers are loving Alexa+, talking to Alexa twice as much and for longer durations across a wider breadth of topics, completing purchases on devices 3x more, streaming music 25% more and using smart home functionality 50% more than Alexa classic.”

“They don't have any personalization data or any shopping history.”

“Customers can deploy agents with enterprise scale, security and reliability with AgentCore, which is being used to deploy an agent as frequently as every 10 seconds.”

“Rufus, our agentic AI shopping assistant continues to resonate with customers.”

“Forrester recently recognized Amazon Ads as a leader in omnichannel advertising platforms with unmatched supply and insights for connected TV and commerce media.”

“Third, as customers expand their AI usage, they also want to consume additional non-AI services, and they're choosing AWS because we've built the broadest and most capable core offerings by a wide margin.”

“And finally, Amazon Leo continues gaining momentum with commercial service on track to launch in a few months.”

“We believe that modern agentic applications will be stateful, and this new technology will rapidly accelerate agentic AI adoption.”

“And that's because when you're building agents, you're building AI applications, you don't want to start a new every time you interact with the model.”

“On the Agentic Commerce milestone question, we are very bullish on what Agentic Commerce will look like.”

“Our chips business continues to grow rapidly and is larger than what a lot of folks thought.”

“As we've been sharing, the faster AWS grows, the more short-term CapEx we will spend.”

“And that's the world I think we're heading to over the next few years.”

“Prime Day will take place in most countries in June, which will bring Prime members even more savings across every category.”

“We saw nearly 40% quarter-over-quarter growth in Q1, and our annual revenue run rate is now over $20 billion and growing triple-digit percentages year-over-year, but this somewhat masks the size.”

“Starting with entertainment, moviegoers have flocked to Project Hail Mary with nearly $615 million in global box office to date.”

“And so one of the interesting things that has been very successful for customers in our store has been when they ask certain questions, we give them a number of suggestions that are all created through AI.”

“Different companies will offer different benefits for customers and the uniquely strong price performance that Trainium offers is compelling to our external and internal customers.”

“We expect to feel similarly about this next wave with much larger potential downstream revenue and free cash flow.”

“And in part because we have the strongest security and operational performance.”

“We offer thousands of features across compute, storage, databases, analytics, security and more, and Gartner consistently recognizes AWS' leadership across their major cloud evaluation areas.”

“The free cash flow and ROIC for these investments are cumulatively quite attractive a couple of years after being in service.”

“One of our enterprise customers just told us, Quick isn't just improving how we work, it's letting us reimagine it.”

“As best as we can tell, our custom silicon business is now one of the top 3 data center chip businesses in the world, the speed at which we've gotten here is extraordinary.”

“We also announced that we plan to acquire Globalstar, which will expand Leo's satellite network with direct-to-device capabilities, and we entered an agreement with Apple for Amazon Leo to power satellite services for iPhones and Apple Watches.”

“They have unusual and scarce global spectrum that's required to provide direct-to-device.”

“While the largest number of AI chips we're bringing in are Trainium, we continue to have a deep partnership with NVIDIA.”

“We continued expanding selection, including more than 600 new notable brands.”

“And then it also afforded us the opportunity to build a deep relationship with Apple, who's going to use our direct-to-device for their iPhones and for their watches.”

“It's very unusual for a business to grow this fast on a base this large.”

“We'll be partners for as long as I can foresee, and we'll always have customers who want to run NVIDIA on AWS, and we will also have a very large chips business ourselves.”

“However, in times of very high growth like now, where the CapEx growth meaningfully outpaces the revenue growth, the early years free cash flow is challenged until these initial tranches of capacity are being monetized and revenue growth outpaces CapEx growth.”

“For perspective, at scale, we expect Trainium will save us tens of billions of dollars of CapEx each year and provide several hundred basis points of operating margin advantage versus relying on others' chips for inference.”

“And it means that those entities can't do a lot of the things that we all take for granted today, including education online, business online, shopping or entertainment online, having constant visibility in digital places.”

“And so we think that Amazon Leo is going to help solve that problem.”

“We also really like the satellite know-how that we'll get as part of that merger with Globalstar.”

“I think it's going to be very good for customers in the long term.”

“On the models question, I think the fact that we're going to have all of the OpenAI models available in Bedrock is a big deal.”

“And just the combination of Leo with the leading cloud in the world in AWS is very compelling to enterprises and to government.”

“And growing 28% on a $150 billion annual run rate basis is not simple to do.”

“Customers have used Transform to save over 1.56 million hours of manual effort when migrating and modernizing their workloads.”

“It's early, but we're seeing nearly 20% of shoppers who interact with the Brand Prompts in Rufus continue the conversation about that brand.”

“We also surpassed 100 million viewers globally for the Culpables movie trilogy, with all 3 films reaching #1 in more than 170 countries at launch.”

“We offer millions of items available for same-day delivery with Prime, up to 40x the selection of a typical big box retail store, and we've delivered more than 1 billion items same day overnight so far this year.”

“Finally, we continue to be confident in the long-term CapEx investments we're making.”

“But I think the business has a chance to be a very large many billion-dollar revenue business.”

“First, we've built broader capabilities than others.”

“And so I like the free cash flow and return on invested capital characteristics of that business in the medium to long term.”

“We remain committed to meeting or beating other retailers on price.”

“Nobody has a better set of chips across AI and CPU workloads than AWS with Trainium and Graviton, and we're unusually well positioned for this AI inflection we're in the early stages of experiencing.”

“Increasingly, what we're finding with consumers and enterprise and governments is that they don't like to have any periods where they don't have connectivity.”

“I am very bullish about Amazon Leo and the opportunity there.”

“And we recently introduced Sponsored Products and Brand Prompts in Rufus that help brands showcase products and customers make more informed buying decisions.”

“But I expect over time, there's a good chance we're going to sell racks over the next couple of years.”

“We also just announced that Meta is committed to using tens of millions of Graviton cores.”

“So on memory and storage and the supply chain, I think everybody knows that the cost of these components, particularly memory has skyrocketed.”

“And then if you look at the Agentic Commerce experiences, if you look at any of these agentic experiences, they tend to be multi-turn conversations where you're not interacting with one search and getting an answer.”

“We will continue investing and inventing to make it so.”

“I think every single one of these functions that we all do at work are going to very significantly change.”

“And what you see with Agentic Commerce is it's a small fraction of what we see with the search engine referrals, but the experience just hasn't gotten great with these third-party horizontal agents yet.”

“The number of developers using QRO more than doubled quarter-over-quarter and enterprise customer usage increased nearly 10x.”

“And in Q1, the average prices of products offered on Amazon.com decreased compared to the same period last year.”

“For our custom AI silicon, we've recently shared very large multiyear, multi-gigawatt Trainium commitments from the 2 leading AI labs in the world in Anthropic and OpenAI as well as an increasing number of companies like Uber betting on Trainium.”

“And I think that we will have a meaningful advantage in performance.”

“And you no longer have to take as much time or spend as much money building the creative.”

“And it fits with what you're asking about on the chip side, which is because we have an unusual collection of chips, we have the leading CPU chip in Graviton, and we have the leading price performance silicon AI chip in Trainium.”