Amazon CEO Highlights Chip Momentum and Satellite Ambitions in 2026 Letter

Amazon CEO Andy Jassy outlined the company’s growing focus on artificial intelligence chips, broadband satellites, and large-scale infrastructure spending in his 2026 shareholder letter, published on Amazon’s website.

Jassy said the company’s custom silicon business, which includes its Trainium and Graviton chips, has reached an annual revenue run rate exceeding $20 billion. Demand for the newest AI chip, Trainium3, is nearly sold out, while future capacity for Trainium4 is already heavily booked despite being 18 months from launch. He emphasized that these chips offer improved price-performance compared to competitors such as Nvidia and Intel.

The letter also highlighted the progress of Amazon Leo, the company’s low Earth orbit satellite network set to begin service in mid-2026. Jassy said Leo has secured contracts with Delta Air Lines, AT&T, Vodafone, Australia’s National Broadband Network, and NASA. The system aims to provide lower-cost, higher-performance connectivity than existing services and will integrate directly with AWS for enterprise and government use.

Jassy confirmed that Amazon plans to invest about $200 billion in capital expenditures during 2026, primarily to expand AWS data centers. He said the spending is backed by customer commitments, including a $100 billion deal with OpenAI and several additional agreements in progress.

He also mentioned potential future ventures in robotics, noting that data from over one million warehouse robots could form the basis for new commercial robotics solutions.