Amazon CEO takes aim at Nvidia, Intel, Starlink, more in annual shareholder letter

Amazon is aggressively positioning itself as a vertically integrated technology powerhouse, investing $200 billion in 2026 capex to build custom chips (Trainium, Graviton) and infrastructure that directly compete with Nvidia and Intel while capturing higher margins through AWS—signaling a major shift in how enterprises will access AI computing and compute resources. For IT leaders, this means AWS will offer increasingly compelling price-performance alternatives to traditional chip vendors, but also that Amazon is raising the stakes for infrastructure investment across the industry. CIOs should expect continued competitive pressure on cloud pricing and evaluate whether Amazon's custom silicon aligns with their workload requirements and cost optimization strategies.