"AWS AI services now carry over $15 billion in annualized revenue, a figure that caught many investors off guard. Jassy also disclosed that Amazon's internal chip business exceeds $20 billion in value, with custom silicon like Trainium and Graviton growing at triple-digit percentages year over year."
"Amazon plans approximately $200 billion in capital expenditures for 2026, primarily directed at AI infrastructure. He dismissed concerns about an AI bubble, framing this moment as a 'once-in-a-lifetime inflection' and projecting substantial future revenue and free cash flow expansion."
"Reports that Amazon is in acquisition talks with Globalstar are drawing serious attention. The potential deal would strengthen Project Kuiper, Amazon's satellite internet initiative and direct challenger to SpaceX's Starlink."
Amazon shares increased by 5% following CEO Andy Jassy's shareholder letter, which highlighted $15 billion in annualized revenue from AWS AI services. Reports of acquisition talks with Globalstar and a new partnership with Eli Lilly also contributed to the stock's rise. Jassy announced a $200 billion investment in AI infrastructure, dismissing concerns about an AI bubble. Amazon's revenue for 2025 reached $716.92 billion, with AWS revenue growing 20%. The potential acquisition of Globalstar could enhance Project Kuiper, Amazon's satellite internet initiative.
Read at 24/7 Wall St.
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