I continue to be impressed with Andy Jassy:

Amazon expects to spend roughly $220 billion in CapEx in 2026, yet CEO Andy Jassy says the company is still leaving meaningful AI demand on the table. He believes the buildout could ultimately help make AWS a $1 trillion annual run-rate business.

Takeaways
1. AWS capacity effectively sold out for 2026, largely committed for 2027, substantial commitments into 2028.
2. Amazon expect approximately $220 bn in 2026 capital expenditures—Jassy:more could be economically justified.
3. AWS is already operating at approximately a $169 billion annual revenue run rate, growing 36.7% year over year.
4. AWS's generative-AI business has exceeded a $25 billion annual revenue run rate in approximately three years.
5. Inference is still approximately an order of magnitude too expensive for widespread enterprise adoption.
6. Amazon's custom semiconductor strategy is becoming a major competitive advantage.
7. Amazon protecting existing AWS customers instead of giving scarce capacity to the highest-paying AI laboratories.
8. AI could substantially increase Amazon's internal operating efficiency and software-development productivity.
9. Amazon rebuilding existing consumer products around generative AI rather than simply adding AI features.
10. Amazon pursuing several major long-term opportunities simultaneously, while recognizing that AI introduces significant operational risks. Alongside AWS and retail, Jassy discussed Amazon Leo satellites, autonomous mobility, healthcare, and robotics.

YouTube: Amazon CEO Andy Jassy on the Infrastructure the AI Era Needs (a16z)