"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."
"We have been through this cycle with the first big AWS growth wave, and we like the results. We expect to feel similarly about this next wave with much larger potential downstream revenue and free cash flow."
"The chip will save us tens of billions of dollars of CapEx each year and provide several hundred basis points of operating margin advantage. The chips business already runs at a $20 billion annual run rate, growing triple digits."
Amazon is set to invest $200 billion in capital expenditures in 2026, the largest single-year infrastructure investment ever. Since this announcement, Amazon's stock has risen over 24%. In Q1 2026, AWS revenue increased by 28%, reaching $37.587 billion, with a significant backlog of $364 billion. Jassy expressed confidence in the return on investment from this spending, citing customer commitments and potential for high operating margins. The Trainium chip is expected to significantly reduce costs and enhance profitability.
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