""We're not investing approximately $200 billion in capex in 2026 on a hunch. 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 free cash flow will be much larger because of it.""
""Of the CapEx expected to be deployed in 2026, a substantial portion already has customer backing, citing as one example OpenAI's commitment of more than $100 billion to AWS.""
Amazon's custom chip business, including Graviton, Trainium, and Nitro, generates over $20 billion in annual revenue, growing at triple-digit rates. If publicly traded, it could be valued at $50 billion annually. Andy Jassy defends a $200 billion capital expenditure plan for 2026, emphasizing it is based on committed customer demand, not speculation. A significant portion of this investment is backed by customer commitments, including OpenAI's $100 billion partnership with AWS, which includes substantial Trainium capacity usage.
Read at TNW | Amazon
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