Amazon CEO Andy Jassy used his annual shareholder letter to justify the company’s massive artificial intelligence spending, arguing the investment is grounded in long-term returns rather than speculation.
“We’re not investing approximately $200 billion in capex in 2026 on a hunch,” Jassy wrote, pushing back on concerns about an AI bubble and aligning with views from tech leaders such as Jensen Huang of Nvidia.
Jassy highlighted artificial intelligence as a key driver of future growth, particularly within Amazon Web Services, where the company expects significant returns from its infrastructure and platform investments.
He also pointed to advancements in consumer-facing AI, including upgrades to the company’s virtual assistant. The redesigned Alexa+ system, he said, is driving increased engagement and higher purchase activity among users.
“The new Alexa+ is so much more capable, useful, and smart than her prior self,” Jassy said.
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Beyond AI, Jassy emphasised Amazon’s continued investment in logistics, including its push into rural delivery.
“While other companies have been backing away from these customers, we’ve been running to them,” he said. “We’ve committed over $4 billion to expand our rural delivery network.”
The company is also investing in drones and faster fulfilment capabilities to improve delivery speed and coverage.
Despite Amazon’s scale, with its retail business approaching $600 billion in revenue — Jassy acknowledged that physical stores still account for the vast majority of global retail sales.
“Our retail business is now approaching $600 billion in topline, yet roughly 80% of global retail sales still happens in physical stores,” he said. “That will change.”
He framed this imbalance as a long-term growth opportunity, signalling Amazon’s continued ambition to capture a larger share of global retail through both digital innovation and operational expansion.
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