Andy Jassy

“Apart from what we've talked about in 2026, the lion's share of capacity in 2027, we're adding a lot of capacity, as I mentioned just a few minutes ago, is largely reserved, and we have quite a bit of capacity that's already been reserved for 2028.”

“As I mentioned earlier, it's over $25 billion in annual revenue at this point.”

“We also expanded Amazon Lens, which lets customers take a photo of anything they see and instantly find the same or similar items on Amazon, to 10 additional countries, and it's now available in 21 countries around the world.”

“Continuum really allows them to use those models productively to find their own vulnerabilities in their code, to design the fixes, and to help them deploy them.”

“We always knew that if we wanted to serve the number of customers who want us to serve them and that we want to serve, we had to find a way to offer mass brands and perishables in a significant way.”

“Kiro, which is our agentic coding service, is an example of that.”

“I think that Amazon Connect, which is our call center service, which is used by all five major leading airline providers, as well as many of the leading banks and healthcare companies, continues to grow very quickly.”

“We added over $4.6 billion in revenue quarter-over-quarter, about 80% more than our largest increase ever.”

“It is hard to talk with enterprises about AI right now without their mentioning security.”

“It's why we've built Amazon Bedrock Agents.”

“Advertisers using Ads Agent targeting see 8% lower cost per impression and 6% lower cost per acquisition, and we've expanded it to 11 new countries this year.”

“We have finally found something that is a real needle mover for us in offering perishables in our same-day facilities that we're now able to offer same-day perishables in 2,300 cities around the U.S.”

“I'll just add one other thing to what Brian said, which is, as I mentioned in my opening comments, we see the AI business following very much the same type of margin trajectory that we saw in the core business before, and it's a little bit ahead of that pace that we saw.”

“Continuum uses agents in each company's own business context to prioritize what matters, reasoning through questions like, "Is the affected component deployed?”

“We think we have the leading price-performance chip in both the AI space with Trainium and in the CPU space with Graviton.”

“In fact, the demand we already have for 2028 is striking.”

“At this level of spend and higher, we have clear line of sight to strong financial returns.”

“We offer millions of items for same-day delivery with Prime, up to 40 times more selection than a typical big box retail store, and our same-day network continues to expand.”

“I think we're still in the relative early stages of how much demand there's going to be for AI.”

“We're not done experimenting, by the way, with other physical formats in the grocery side, but we've hit on something with same-day perishables in our same-day facilities that's changing the trajectory of our everyday essentials business.”

“Finally, it recommends the fix.”

“The fact that we have multi-year, multi-gigawatt commitments from the two largest AI labs, Anthropic and OpenAI, and more and more companies, as I mentioned in my opening comments, using Trainium is exciting and promising.”

“Finally, Amazon Leo is close to 400 satellites in orbit, enough to begin initial satellite internet service this year.”

“We just have an incredible amount of demand for Trainium.”

“This is an advantage for AWS, as our Graviton chip is the strongest CPU chip, offering up to 30%-40% better price performance than other options.”

“A big chunk of it is our Whole Foods Market business, which is the leading organic grocer out there.”

“One is that increasingly more enterprises are building their transformation plan to move from on-premises to the cloud.”

“We continue offering everyday low prices that meet or beat our competitors, as well as deep discounts and savings during sales events.”

“We also saved customers nearly $250 million so far this year in out-of-pocket costs, up more than 400% year-over-year.”

“Globally, we delivered over 40% more items same day or overnight in the first 6 months of the year than the same period last year.”

“We are unusually well-positioned for this AI inflection, given our leading price-performance chips in both AI with Trainium and CPU with Graviton.”

“Stitching all that together reliably is hard, and it's stalled many production deployments.”

“People wanted, when they got documents, not to have to read every document so carefully, and to get a summary, and then to be able to write their own analyses and responses to these things, and to be able to do business intelligence through these agents.”

“In my opinion, that will be the largest absolute segment, the existing production workloads in the enterprise and new businesses and workloads that startups build too.”

“In addition to leading model building and inference services, customers need easier ways to build, run, and leverage agents.”

“We also continued to expand our ultra-fast service, Amazon Now, which offers delivery in 30 minutes or less on thousands of everyday essentials.”

“Our backlog stands at $496 billion, growing triple digits year-over-year.”

“We're the second largest grocer in the U.S., and our grocery business continues growing quickly across perishables and non-perishables.”

“If you look in those cities, nine of the top 10 best sellers in those geographies are perishables.”

“Once a data center opens with servers plugged in, we start generating significant revenue right away and then get to monetize these data centers for 30-plus years without having to spend that startup capital again.”

“We introduced more than 30 new advertisers to the NBA in our first year, and inventory on Thursday Night Football, NBA, WNBA, and NASCAR all sold out.”

“We find that everywhere Alexa goes, it drives momentum for the business.”

“Customers love Alexa for Shopping, our agentic AI shopping assistant.”

“Some of this is born out of what customers tell us they wish they had and they want to be using.”

“As we've been saying for 18 months now, technically competent companies are going to build their own foundation models.”

“Additionally, increasingly more shoppers are discovering products in our agentic and conversational experiences, including in Alexa+ and Alexa for Shopping.”

“We've talked for a while about grocery, and we have a very large business in that space.”

“They want their AI inference to reside near their other applications and data, and more of it resides in AWS than anywhere else.”

“Unlike other offerings in this space, Q also lets you manage across leading SaaS tools like Slack, Salesforce, Jira, Teams, and ServiceNow.”

“We're pleased with the customer response to Prime Day, where customers shop millions of deals, including more than 80% at our lowest price of the year and hundreds of thousands discounted by 40% or more.”

“We're on pace with the capacity build that we talked about a few quarters ago, where we said we expect to have double the power capacity by the end of 2027 that we had in 2025, and we continue to be on that track.”

“Amazon Q's a really interesting example where we just had so many people inside the company who wanted really an intelligent AI assistant to help them work.”

“My view of it is that within the next few years, you're going to have at least a half dozen models that are comparably good to each other.”

“We have all of them in Bedrock, and it's one of the many reasons why Bedrock is growing so quickly.”

“We already have meaningful revenue commitments from enterprises and government customers, and we have more than 20 partners who will extend the reach of our network across the globe.”

“New agreements that you sign, you always take into account what your costs are and how you ultimately build a price that you agree to with your customers.”

“On the other end of the barbell are enterprises who are getting real value from AI in cost avoidance and productivity.”

“Compared to single sport advertisers, multi-sport viewers are driving 12% higher spend and 17% more orders on Amazon.”

“Coding agents are a good example, and there are several successful ones, including Claude Code, Codex, and our own spec-driven Kiro, which is up to 50% more cost-effective than others and tripled in usage quarter-over-quarter.”

“We're reporting $200.6 billion in revenue, up 20% year-over-year.”

“We recently launched Amazon Supply Chain Services.”

“In Europe, viewership in the NBA more than doubled year-over-year on Prime Video, with the highest average viewership on record.”

“I think it's a reflection, again, of customers being very enthusiastic about using AWS, both across core and for AI.”

“Our chips business now has an annual revenue run rate of over $25 billion, growing triple-digit percentages year-over-year.”

“Data center capital is spent starting two years before we can put servers into them to start monetizing.”

“We see the margins and returns in AI tracking what we saw with Core at the same point of evolution, actually a little ahead.”

“The revenue commitments have increased nearly three times quarter-over-quarter, and Graviton5 is growing nearly 2x faster as Graviton4 did.”

“Our AI revenue run rate climbed significantly quarter-over-quarter, and is now also over $25 billion, growing triple-digit percentages year-over-year.”

“Q2 was another very strong quarter for Amazon.”

“Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too.”

“We're seeing strong growth across both AI and non-AI, what we call core, and growth in one is driving growth in the other.”

“The deals that you sign, those will be the prices and those will be the agreements that we have over the duration of that contract.”

“Some of that has to do with just how fast our delivery has gotten over the last two to three years.”

“AWS Transform, which makes it much easier to migrate software, is super useful for enterprises.”

“On your first question, Colin, we see a very substantial opportunity both for our customers and for AWS in building some of these agentic applications.”

“We also expanded ultra-low price selection on Amazon Haul in the U.S. by nearly 20x since launch and now have over 6 million items priced under $10.”

“That is going to change very significantly over time.”

“The core business is growing very quickly as well, and I think there's at least a couple things at play.”

“I think also it allows us to have more control over prioritization on what models focus on.”

“If you're a company that's building important AI applications, you want to make sure that you have the ability to use all the available models.”

“We think, as I mentioned earlier, it has the potential to be a $1 trillion revenue business for AWS, and we intend on continuing to be the leaders.”

“We now believe we will spend approximately $220 billion in cash CapEx in 2026.”

“Graviton is used by 98% of our top 1,000 EC2 customers.”

“Finally, we make it easy to create, launch, and optimize full-funnel campaigns using AI-powered tools, including Ads Agent, which turns hours of setup and targeting into minutes.”

“Choice is good for customers, competition, and driving the cost of inference down, which customers care deeply about.”

“AI is growing, at such a rapid rate, and it's pulling along core alongside of it.”

“First of which is it just gives us additional control over cost.”

“You want that leading selection with the right price performance and with the right governance and security, and there's nothing like Bedrock that provides that right now.”

“Well, on the first question, Brian, we have so much demand right now.”

“AI is obviously growing at a very rapid rate, as we talked about, well over $25 billion in annual revenue run rate at this point.”

“Moving on to Amazon Ads, we saw strong growth across our offerings, generating $19.8 billion of revenue, up 26% year-over-year.”

“You need a place to store this AI data and to run vector databases, which are also emblematic of a meaningful edge for AWS because we have the broadest and most capable functionality by a fair bit in these core infrastructure areas.”

“Alexa+ expanded to Germany, Austria, France, and Brazil, and hundreds of millions of customers are using new Alexa experiences.”

“That equation is going to flip in the next 10 to 20 years.”

“Q enforces a company's existing access controls so each person sees only what they're cleared to see.”

“It's fifth straight acceleration quarter, largest acceleration in 18 quarters.”

“Another of these agentic services is Amazon Q, an intelligent AI work companion that helps you manage, search, and automate your digital workload across email, calendar, local or cloud files, and custom workflows.”

“We're just seeing very significant traction in our everyday essentials and in our grocery items.”

“With the leading CPU chip in Graviton, it makes AWS an even more attractive choice.”

“I think it's actually kind of useful to look at at least our view of what we see in the demand and adoption curve right now, which is we see this adoption curve in AI right now is very barbellled.”

“Remember, enterprises are still very early in using inference at scale in their current production applications.”

“We added millions of new products to our selection, including over 700,000 from notable brands.”

“My view of it is that AWS and Amazon can have a wildly successful business without its own frontier model.”

“If you look at the growth in geographies that Whole Foods Markets are in, they're significantly outpacing the growth of comparable grocers, and the profit trajectory continues to trend the right way as well.”

“Servers and networking equipment operate on a shorter cycle.”

“If the demand isn't there, we won't spend the capital.”

“We continue to see strong customer response with over 80% growth in growth sales and units sold quarter-over-quarter, and we served over 60% more customers quarter-over-quarter.”

“We have, both from our own external customers as well as our internal customers inside the company, certain priorities that matter that we want the models trained especially well for, then it gives us some control on speed.”

“We have a lot of options available to us as we continue to fund this growth that we're seeing in AWS.”

“We continue speeding up overall delivery and once again achieved record delivery speeds for customers in the first half of the year.”

“While companies will construct their own purpose-built agents from the ground up, most will also use turnkey agentic services.”

“On the question about selling Trainium, we're quite excited about what's happening in our chips business.”

“Any business can move, store, and deliver everything from raw materials to finished products using the same supply chain that supports Amazon.”

“Bedrock not only provides the best selection of leading models at superior performance and with the governance and security controls that companies need, it's also continuing to grow incredibly quickly.”

“We do have an increasing number of customers who are interested in us providing the Trainium chips to them, separate from our cloud, and we're actively having those conversations and exploring, and I expect there's a real chance we'll do that in the future.”

“You see more and more enterprises that are moving and building plans to move to the cloud, we're winning the lion's share of those with the capabilities I mentioned earlier and the advantages.”

“The number of monthly active perishables customers grew over 50% since the start of the year.”

“I think some of that has to do with the broader selection we have.”

“Then it takes action: scheduling meetings, drafting and sending email, updating a CRM record, building a dashboard, and more.”

“Remember, by the way, that 85% of the global IT spend is still on premises.”

“We grew the number of new customers for Amazon Pharmacy by more than 2x in the first 6 months of the year, and same-day prescription deliveries nearly 5x.”

“We added 80 new cities and towns across the U.S. and several major cities in Egypt in Q2, and Amazon Now is available in 9 countries and over 250 cities and towns globally.”

“Revenue growth of 36.7% year-over-year, accelerating for the fifth straight quarter, our fastest growth in 18 quarters back when AWS was less than half its current revenue size.”

“We feel similarly about the AI stack, top to bottom.”

“It's off to an amazing start that we're expanding very rapidly.”

“We're optimistic about that.”

“Having a player like ourselves that's always focused on trying to take the price performance and the cost down for customers all the time, we think will help keep the models more cost effective for customers.”

“We have a lot of demand in front of us, and we're going to invest in this business to continue to be the significant market segment leader that we are today.”

“For example, in the U.S., customers who use Alexa for Shopping spend an average of over 40% more per order than those who don't.”

“It's also worth noting that AWS has a strong track record of pulling forward break evens on server equipment where we've already made meaningful progress and finding ways to extend the useful life of this equipment without sacrificing customer experience.”

“Customers also need a high-performance, cost-effective inference service, and that's what Amazon Bedrock provides.”

“For same-day orders with perishables, on average, they average three times more units per order.”

“We see continued growth and engagement in Prime Video ads and live sports.”

“I'll start on the backlog number.”

“Starting with entertainment, the inaugural season of NBA on Prime Video delivered strong viewership with a peak of 6.5 million U.S. viewers for Game Seven of the Eastern Conference Semifinals, outperforming Game Seven on broadcast a year ago.”

“There is, on one end of the barbell, the AI labs are consuming gobs and gobs of compute, and there are a few runaway successful generative AI applications like Claude Code and ChatGPT.”

“For servers and networking equipment, on average, it takes a little less than three years to break even on that investment.”

“I'll start with AWS, which is booming right now, and I'll share the numbers, what we think is going on, and why we're enthusiastic about the ROIC equation, even with heavy CapEx the next few years.”

“Earlier this year, we said we plan to invest approximately $200 billion in cash CapEx in 2026, the majority of which to support AI and AWS.”

“When you can deliver items to people, when you have that broad selection like we do at low prices, and you can deliver that selection to people as fast as we are right now, people consider you for a lot more of their total purchases and shopping visits.”

“I think that there are several reasons for why we saw such significant growth, we're really pleased and excited.”

“As frontier models get increasingly powerful, they're making it easier to find security vulnerabilities in technical applications, many of which humans haven't found.”

“I think it's no secret right now to any company in the world that there are inflated prices right now on some of the components like memory and hard drives and SSDs.”

“They'll all be in Bedrock, one of them will be ours.”

“Shoppers who click a sponsored prompt convert to a sale 48% more often and spend 21% more on average than those who don't.”

“There is no easier service for this than our SageMaker AI service.”

“We also continue to have a deep partnership with Nvidia, and we'll continue making AWS the best place to run Nvidia chips, as we have customers who will run on Nvidia for as long as we can foresee, and we believe strongly that customers want choice.”

“We've done this before in the first era of cloud computing, just over a longer time horizon, where demand built more gradually than it has in AI.”

“Over time, I expect that we will continue to sign more deals with customers, and as I mentioned earlier, we're going to pursue the opportunity to continue being the significant market segment leader that we are.”

“I think there are several things that are driving it.”

“They're going to have lots of different models that actually are comparable in capabilities.”

“We are quite enthusiastic and excited about the pace with which we are growing the amount of everyday essentials, as well as perishables, in the business right now.”

“The number of monthly active perishable customers has increased 50% since the start of this year.”

“A production agent needs somewhere secure to run, memory so it holds context, an identity so it can act on a user's behalf, tools and data to connect to, and a way to watch what it's doing once real traffic hits.”

“Same-day orders with perishables average over 3x more units per order, and fresh groceries now make up 6 of the top 20 best sellers on amazon.com.”

“We also drew 36 million viewers globally for the series premiere of "Off Campus" on Prime Video in its first 12 days, becoming Prime Video's number three top-viewed series debut ever.”

“All that said, we are pursuing our own frontier model, and we're doing it for a few reasons.”

“That's really how Amazon Q started, was to do research, to do business intelligence, to do summarization.”

“They all have very high promise, but there are several others that we're working on, and we think it's going to be very helpful for customers and our business.”

“Over 350 million customers have used it in the last 12 months, and engagement accelerated in Q2, with active users nearly doubling and interactions up over 5x year-over-year.”

“Growth in AI drives core because post-training reinforcement learning and agent tool use is mostly done on CPUs versus AI accelerators.”

“We recently released AWS Continuum, which discovers, prioritizes, validates, and remediates code vulnerabilities.”

“Sponsored Products continues to be our largest offering and a key driver of growth.”

“Customers who've tried Alexa+ are signing up for Prime at nearly 25% higher rates.”

“As I mentioned in my opening comments, it's pretty remarkable not only how fast it's taken off inside Amazon, but how many external enterprises have put it into production with a very large number of people at their companies.”

“AWS is now a $169 billion annualized revenue run rate business, which, for perspective, would place it 24th on the Fortune 500 list if it was a standalone company.”

“Operating income was $27.5 billion, up 43% year-over-year.”

“There are two major parts of the investment, the data centers and the servers and networking equipment that go into them.”

“The servers currently have a useful life of at least five to six years, and most of our AI capacity these days is being contracted for at least five-year terms.”

“As we get a few years out and the revenue growth outpaces the incremental CapEx growth, which will happen at some point, the resulting revenue, free cash flow, and return on invested capital is very compelling.”

“And I think it has some characteristics that are reminiscent of AWS in that it's capital-intensive upfront where you're committing a lot of capital and cash in the early years for assets that you get to leverage over a long period of time.”

“And then at the same time, we're seeing very significant growth in our core business.”

“We already have meaningful revenue commitments from enterprises and governments, including Delta Airlines, JetBlue, AT&T, Vodafone, DIRECTV Latin America, Australia's National Broadband Network, DP World Tour, NASA and others.”

“I mentioned in my letter, but if you look at one of our services, we swapped out the engine of the service while we are also running the service full tilt.”

“However, these CapEx investments fund assets with many year useful lives, 30-plus years for data centers, 5 to 6 years for chips, servers and networking gear.”

“Monthly active users are up over 115% and engagement is up nearly 400% year-over-year.”

“It's always been true and always will be true.”

“And we now have over $225 billion in revenue commitments for Trainium.”

“And while I think there will continue to be lots of work done that way, I think the future of using these models is a stateful model, a stateful API.”

“And so increasingly, we see very large demand for consumers to have direct-to-device.”

“The service is now available to tens of millions of customers across 9 countries with more to come as well.”

“In live sports, we offered exclusive coverage of the NBA SoFi Play-In Tournament with total viewership up 18% compared to last year on cable.”

“Units grew 15% year-over-year, the highest we've seen since the tail end of COVID lockdowns.”

“And the models that they're building and the companies that have successful generative AI applications are certainly spending a lot.”

“We offer perishables delivered same day alongside millions of other items in more than 2,300 cities and towns across the U.S. with more to come.”

“Rufus can research products, track prices and auto buy products in our store when they reach a set price.”

“And we continue to expand our ultra-fast delivery service, Amazon Now, which offers delivery in 30 minutes or less on thousands of items.”

“But a lot of that is also as AI growth is exploding, it turns out that it leads to a lot of core growth as well.”

“And in that process of having multi turns, there are multiple opportunities to surface relevant products to customers, many of which will be organic and some of which will be sponsored.”

“Graviton is our industry-leading CPU chip, which allows Meta to run the CPU-intensive workloads behind agentic AI with the performance and efficiency they need at their scale.”

“Amazon Bedrock, which is used expansively by over 125,000 customers, runs most of its inference on Trainium and almost 80% of the Fortune 100 companies are using Bedrock.”

“And much of Trainium4, which is still about 18 months from broad availability has already been reserved.”

“We have over 30 launches planned in 2027.”

“It's early, but the initial response and feedback are very strong.”

“Our grocery business continues to grow quickly across both perishables and nonperishables.”

“On the question about Trainium and the notion of our selling racks over time, I do think that's very much a possibility.”

“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.”

“I think it's going to be good for customers, and it's going to be good for our business.”

“Fourth, AWS is the strongest security and operational performance of any AI and infrastructure provider and start-ups, enterprises and governments continue to choose AWS as the foundation for their most critical workloads.”

“Whole Foods Market also continues to accelerate with over 550 stores today and 100 more coming in the next few years.”

“We're excited to make OpenAI's models available in Bedrock.”

“Zoox has now driven nearly 2 million miles and carried more than 350,000 riders, is available to the public in Las Vegas and San Francisco and is testing in 8 other cities.”

“We're also making delivery even faster, recently announcing 1 and 3-hour delivery options on over 90,000 items with 1-hour delivery available in hundreds of cities and towns, 3-hour delivery in 2,000-plus cities and towns and more on the way.”

“Its opening weekend was the second biggest for any non-sequel, non-franchise film in the last decade.”

“In the first 3 years of this AI wave, AWS' AI revenue run rate is over $15 billion, nearly 260x larger.”

“We're reporting $181.5 billion in revenue, up 17% year-over-year.”

“So I actually believe that advertising will do well in a world of agentic commerce.”

“Prime members are loving the convenience of getting fresh groceries alongside other products they're buying on Amazon, and perishable sales have grown over 40x year-over-year and make up 9 of the top 10 most ordered items for same-day delivery where the service is available.”

“AWS is now a $150 billion annualized revenue run rate business.”

“On the backlog, the backlog for Q1 is $364 billion.”

“As AI systems shift from answering questions to taking actions and as post-training and inference scale up, the compute required pulls heavily on CPUs.”

“And that was really the impetus for our acquisition of Globalstar.”

“Trainium3, which just started shipping at the start of 2026 and is 30% to 40% more price performance than Trainium2 is nearly fully subscribed.”

“AI is commonly seen as a GPU story, but the rise of agentic workloads, real-time reasoning, code generation, reinforcement learning and multistep task orchestration is driving massive CPU demand as well.”

“We continue working to be the best place for brands of all sizes to grow their businesses, and we're pleased with the continued strong growth across our full funnel offerings, generating $17.2 billion of revenue in the quarter and up 22% year-over-year.”

“But we also see quite a bit of enterprise adoption and usage of AI.”

“Our Trainium2 chip has about 30% better price performance than comparable GPUs and is largely sold out.”

“I think we'll be about 2x better on the downlink than existing alternatives and about 6x better on the uplink performance than existing alternatives.”

“Yesterday, we also started the preview of Amazon Bedrock managed agents powered by OpenAI, the Stateful Runtime Environment that enables any organization to build generative AI applications and agents at production scale.”

“It started last year in India, where orders are increasing 25% month-over-month with Prime members tripling their shopping frequency once they start using it.”

“And most of the model work and most of the AI has been done in these stateless models, kind of tokens in and tokens out.”

“And the last time we saw growth at this clip, AWS was roughly half the size.”

“So I think it's a big deal for customers, and I think it's going to be good for our business as well.”

“It's true in chips, too, by the way, is that customers want choice.”

“That's why Meta chose Graviton, which delivers up to 40% better price performance than any other x86 processors and now used by 98% of the top 1,000 EC2 customers.”

“We just enabled yesterday the stateless model, the 5.4 model, and we'll enable the most recent 5.5 model in the next couple of weeks.”

“There are several reasons customers are choosing AWS for AI.”

“I think we've done a good job in making sure that we're not capacity constrained there, but we're watching that very closely.”

“To put our growth in perspective, 3 years after AWS launched, it had a $58 million revenue run rate.”

“Customers always want choice.”

“But if you're not actually working on inventing those right now, I think it's going to be very hard to have the business and the experience leadership that we want over a long period of time.”

“You can easily keep refining your preferences and Quick's advanced knowledge graph enables its AI agents to automatically learn from your interactions to become more personalized over time.”

“Starting with AWS, growth continued to accelerate, up 28% year-over-year, the fastest growth rate in 15 quarters, up $2 billion quarter-over-quarter, the largest Q4 to Q1 AWS revenue increase ever.”

“It means that we're really unusually well positioned for the inflection that we're seeing and the type of growth that we're experiencing.”

“Customers shopping same-day perishables build larger baskets, adding nearly 3x as many items to their order and spend over 80% more than customers who don't.”

“In AWS customers can build agents with their proprietary data and strands, which has been downloaded more than 25 million times and saw 3x more downloads quarter-over-quarter.”

“We deepened our Netflix partnership with Amazon Audiences, which enables advertisers to apply Amazon's exclusive signals from shopping, browsing and streaming to Netflix's highly engaged viewers to reach the right audiences and drive even stronger performance.”

“That does not include the recent deal that we announced with Anthropic for over $100 billion.”

“I think it's going to have a comparable impact on how we do DevOps and how we do customer service, how we do research, how we do analytics, how sales is conducted.”

“We continue to find new ways to speed up delivery for customers in both cities and rural areas.”

“Customers are loving Alexa+, talking to Alexa twice as much and for longer durations across a wider breadth of topics, completing purchases on devices 3x more, streaming music 25% more and using smart home functionality 50% more than Alexa classic.”

“They don't have any personalization data or any shopping history.”

“Customers can deploy agents with enterprise scale, security and reliability with AgentCore, which is being used to deploy an agent as frequently as every 10 seconds.”

“Rufus, our agentic AI shopping assistant continues to resonate with customers.”

“Forrester recently recognized Amazon Ads as a leader in omnichannel advertising platforms with unmatched supply and insights for connected TV and commerce media.”

“Third, as customers expand their AI usage, they also want to consume additional non-AI services, and they're choosing AWS because we've built the broadest and most capable core offerings by a wide margin.”

“And finally, Amazon Leo continues gaining momentum with commercial service on track to launch in a few months.”

“We believe that modern agentic applications will be stateful, and this new technology will rapidly accelerate agentic AI adoption.”

“And that's because when you're building agents, you're building AI applications, you don't want to start a new every time you interact with the model.”

“On the Agentic Commerce milestone question, we are very bullish on what Agentic Commerce will look like.”

“Our chips business continues to grow rapidly and is larger than what a lot of folks thought.”

“As we've been sharing, the faster AWS grows, the more short-term CapEx we will spend.”

“And that's the world I think we're heading to over the next few years.”

“Prime Day will take place in most countries in June, which will bring Prime members even more savings across every category.”

“We saw nearly 40% quarter-over-quarter growth in Q1, and our annual revenue run rate is now over $20 billion and growing triple-digit percentages year-over-year, but this somewhat masks the size.”

“Starting with entertainment, moviegoers have flocked to Project Hail Mary with nearly $615 million in global box office to date.”

“And so one of the interesting things that has been very successful for customers in our store has been when they ask certain questions, we give them a number of suggestions that are all created through AI.”

“Different companies will offer different benefits for customers and the uniquely strong price performance that Trainium offers is compelling to our external and internal customers.”

“We expect to feel similarly about this next wave with much larger potential downstream revenue and free cash flow.”

“And in part because we have the strongest security and operational performance.”

“We offer thousands of features across compute, storage, databases, analytics, security and more, and Gartner consistently recognizes AWS' leadership across their major cloud evaluation areas.”

“The free cash flow and ROIC for these investments are cumulatively quite attractive a couple of years after being in service.”

“One of our enterprise customers just told us, Quick isn't just improving how we work, it's letting us reimagine it.”

“As best as we can tell, our custom silicon business is now one of the top 3 data center chip businesses in the world, the speed at which we've gotten here is extraordinary.”

“We also announced that we plan to acquire Globalstar, which will expand Leo's satellite network with direct-to-device capabilities, and we entered an agreement with Apple for Amazon Leo to power satellite services for iPhones and Apple Watches.”

“They have unusual and scarce global spectrum that's required to provide direct-to-device.”

“While the largest number of AI chips we're bringing in are Trainium, we continue to have a deep partnership with NVIDIA.”

“We continued expanding selection, including more than 600 new notable brands.”

“And then it also afforded us the opportunity to build a deep relationship with Apple, who's going to use our direct-to-device for their iPhones and for their watches.”

“It's very unusual for a business to grow this fast on a base this large.”

“We'll be partners for as long as I can foresee, and we'll always have customers who want to run NVIDIA on AWS, and we will also have a very large chips business ourselves.”

“However, in times of very high growth like now, where the CapEx growth meaningfully outpaces the revenue growth, the early years free cash flow is challenged until these initial tranches of capacity are being monetized and revenue growth outpaces CapEx growth.”

“For perspective, at scale, we expect Trainium will save us tens of billions of dollars of CapEx each year and provide several hundred basis points of operating margin advantage versus relying on others' chips for inference.”

“And it means that those entities can't do a lot of the things that we all take for granted today, including education online, business online, shopping or entertainment online, having constant visibility in digital places.”

“And so we think that Amazon Leo is going to help solve that problem.”

“We also really like the satellite know-how that we'll get as part of that merger with Globalstar.”

“I think it's going to be very good for customers in the long term.”

“On the models question, I think the fact that we're going to have all of the OpenAI models available in Bedrock is a big deal.”

“And just the combination of Leo with the leading cloud in the world in AWS is very compelling to enterprises and to government.”

“And growing 28% on a $150 billion annual run rate basis is not simple to do.”

“Customers have used Transform to save over 1.56 million hours of manual effort when migrating and modernizing their workloads.”

“It's early, but we're seeing nearly 20% of shoppers who interact with the Brand Prompts in Rufus continue the conversation about that brand.”

“We also surpassed 100 million viewers globally for the Culpables movie trilogy, with all 3 films reaching #1 in more than 170 countries at launch.”

“We offer millions of items available for same-day delivery with Prime, up to 40x the selection of a typical big box retail store, and we've delivered more than 1 billion items same day overnight so far this year.”

“Finally, we continue to be confident in the long-term CapEx investments we're making.”

“But I think the business has a chance to be a very large many billion-dollar revenue business.”

“First, we've built broader capabilities than others.”

“And so I like the free cash flow and return on invested capital characteristics of that business in the medium to long term.”

“We remain committed to meeting or beating other retailers on price.”

“Nobody has a better set of chips across AI and CPU workloads than AWS with Trainium and Graviton, and we're unusually well positioned for this AI inflection we're in the early stages of experiencing.”

“Increasingly, what we're finding with consumers and enterprise and governments is that they don't like to have any periods where they don't have connectivity.”

“I am very bullish about Amazon Leo and the opportunity there.”

“And we recently introduced Sponsored Products and Brand Prompts in Rufus that help brands showcase products and customers make more informed buying decisions.”

“But I expect over time, there's a good chance we're going to sell racks over the next couple of years.”

“We also just announced that Meta is committed to using tens of millions of Graviton cores.”

“So on memory and storage and the supply chain, I think everybody knows that the cost of these components, particularly memory has skyrocketed.”

“And then if you look at the Agentic Commerce experiences, if you look at any of these agentic experiences, they tend to be multi-turn conversations where you're not interacting with one search and getting an answer.”

“We will continue investing and inventing to make it so.”

“I think every single one of these functions that we all do at work are going to very significantly change.”

“And what you see with Agentic Commerce is it's a small fraction of what we see with the search engine referrals, but the experience just hasn't gotten great with these third-party horizontal agents yet.”

“The number of developers using QRO more than doubled quarter-over-quarter and enterprise customer usage increased nearly 10x.”

“And in Q1, the average prices of products offered on Amazon.com decreased compared to the same period last year.”

“For our custom AI silicon, we've recently shared very large multiyear, multi-gigawatt Trainium commitments from the 2 leading AI labs in the world in Anthropic and OpenAI as well as an increasing number of companies like Uber betting on Trainium.”

“And I think that we will have a meaningful advantage in performance.”

“And you no longer have to take as much time or spend as much money building the creative.”

“And it fits with what you're asking about on the chip side, which is because we have an unusual collection of chips, we have the leading CPU chip in Graviton, and we have the leading price performance silicon AI chip in Trainium.”