00:00 Speaker A
Well, let’s switch gears to Amazon CEO Andy Jassy’s 2020 2025, 2025 letter to shareholders. Uh a couple of curve balls in here that I noted, a $20 billion dollar plus chip business.
00:10 Speaker B
Yeah.
00:10 Speaker A
Alexa Plus, apparently driving three times more buying, so kind of in the same field as what we were just talking about. Even satellite internet project, Project Leo, um something on the radar there. So, I’m just wondering are investors thinking about Amazon too narrowly or is it still just the, you know, the shopping and AWS?
00:27 Speaker B
I I it’s it’s still shopping in AWS. Um, you know, Leo is a uh kind of nice to have kind of, I guess you would think. I actually it’s interesting, I’d like to know where they’re going to put that.
00:39 Speaker B
Maybe under AWS because it’s, you know, it’s an internet service, right? Um, they did say that AI is driving uh revenue in uh the the AWS business. Um, and they also, as you said, you uh pointed out that that uh chip business, but they said their AWS AI revenue run rate is more than $15 billion as of Q1 2026.
01:00 Speaker B
And then that chip business, $20 billion, but that’s just if you attribute it to AWS. Now if you sold the chip business, you know, if you have the chip business on its own, it’s a 50 billion dollar business.
01:13 Speaker A
It’s a solid business just like that.
01:14 Speaker B
That’s not bad. I would take $50 billion. And they said that one of the interesting things is their CPUs, they said that they’ve gotten requests from two major customers to buy out all the capacity for their CPUs in 2026. and they said, it’s very flattering but we can’t do that. We have other customers. And then oh yeah, on top of that,
01:31 Speaker B
they said that the response to their own GPUs, their their uh trainium chips has been so good that now they’re thinking, well, do we sell this as racks down the line? That that was something that they brought up and that now enters them into direct competition with Nvidia. and this is kind of what we’ve been seeing as far as the the uh uh cloud giants is, you know, okay, well, they they’re developing their chips and they keep saying, well, we we want to keep working with Nvidia, we want to keep, you know, using Nvidia, but we’ll just have ours in case customers want this as as you know, uh an alternative, but the whole time you’re thinking, well, that could be competition down the line and now
02:00 Speaker B
it’s starting to become competition.
02:01 Speaker A
Yes, yes, yes.
02:02 Speaker B
Amazon’s saying they may do this. Google, the rumors that they’re working uh to get their TPUs to to meta that the information had reported. So this is starting to snowball. and we’ll have to see what happens then for Nvidia.
