Amazon CEO Andy Jassy said in his annual shareholder letter on Thursday that Amazon’s AI services at its cloud-computing unit, Amazon Web Services, are generating annualized revenue of more than $15 billion, based on first-quarter performance, representing roughly 10% of AWS’s $142 billion revenue run-rate. Amazon shares rose 4.6% in Thursday afternoon trading. The company projected $200 billion in capital expenditure this year, mainly focused on AI. Jassy said, “We’re not investing … on a hunch,” adding that of the AWS capex expected in 2026, “much of which will be monetized in 2027-2028, we already have customer commitments for a substantial portion of it.” Jassy also pointed to rapid growth in Amazon’s custom chip business, which includes Graviton processors, Trainium AI chips and Nitro networking cards, now with an annualized revenue run-rate of over $20 billion, doubling from the $10 billion disclosed alongside fourth-quarter results. Jassy suggested Amazon could eventually sell its chips to outside customers, saying, “There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future.”