Amazon CEO reveals AI revenue, dismisses spending doubts in annual letter

Jassy also pointed to rapid growth in Amazon’s custom chip business, as large tech companies develop their own processors to cut dependence on Nvidia’s costly AI ​chips.

Amazon's AI services at its cloud-computing unit are generating annualized revenue of more than $15 billion, CEO Andy Jassy said, the first time ​the company has reported numbers on a business it has backed with billions of ‌dollars in investment. The figure, based on first-quarter performance, represents roughly 10% of Amazon Web Services' $142 billion revenue run-rate and follows years of wait from investors and analysts. The disclosure was one of several Jassy made on Thursday in his annual shareholder letter that ​sketched an increasingly confident portrait of the technology giant's AI ambitions. Like rivals, ​Amazon is under pressure to prove its spending on AI would pay off. The company ⁠projected $200 billion in capital expenditure this year, mainly focused on AI, a figure that spooked investors and fanned ​worries about an industry bubble. "We're not investing ... on a hunch," Jassy said.