Two of Amazon Web Services' (AWS) large customers have asked the company if they can purchase every single Graviton instance capacity available this year so far.

That is according to the 2025 annual letter to shareholders from Amazon president and CEO Andy Jassy.

While Jassy acknowledged all aspects of Amazon's business, naturally, the vast majority of the letter focused on AI - and how AWS is making the most of it.

Jassy first of all addressed his perspective on whether AI is "over-hyped, whether we’re in “a bubble,” and if the margins and ROIC [return on invested capital] will be appealing." His answer: "No, no, and yes," before going on to company AI to Edison's invention of the first central power plant.

While AWS' success (and investment) in AI is no secret, one area Jassy drew particular attention to was the company's home-made chips. According to Jassy, "two large AWS customers have already asked if they could buy *all* of our Graviton instance capacity in 2026 (Graviton is our widely-adopted custom CPU chip)," though reassured that AWS "can’t agree to these requests given other customers’ needs."

Graviton was AWS' first custom chip, launching with its first generation in 2018, and is now on its fifth generation. Besides the CPU, however, AWS has delved into the AI chip world with its Trainium and Inferentia chips, which Jassy said have opened up "many possibilities."

"We expect Trainium will save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others’ chips for inference. Our annual revenue run rate for our chips business (inclusive of Graviton, Trainium, and Nitro—our EC2 NIC) is now over $20 billion, and growing triple digit percentages YoY," he wrote, adding that if the company were to make its chips business a stand aone company and sold chips to AWS and other third parties following the same model as Nvidia, its "annual run rate would be ~$50 billion."

"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," he added.

This isn't quite on par with Nvidia, with the company bringing in a revenue of $68.1 billion in the most recent quarter alone, but it is still impressive.

Beyond the chips, Jassy reiterated the company's plan to spend some $200 billion in 2026 - a capex estimate shared by Amazon earlier this year during its Q4 2025 earnings call.

"We’re not investing approximately $200 billion in capex in 2026 on a hunch," Jassy wrote, noting that there are several customer commitments that will enable the monetization of this.

He said that of the capex expected to be spent, much will be monetized in 2027/2028, and noted that the assets gained through this spending have long lifespans - more than 30 years for data center buildings, and five to six years for the hardware assets.

In 2025, AWS stood up 3.9GW of power capacity, and is expected to double its total footprint (undisclosed) by the end of 2027.

With this, he also drew attention to the hit taken to Amazon's free cash flow (FCF). In FY2025, FCF dropped from $38 billion to $11 billion, a change which "primarily reflects capex investments in artificial intelligence."

Despite this dramatic drop, Jassy has said it is "hard to overstate" his optimism. The company's stance on the matter can be summarized as such: "We are willing to make large capex investments and endure short-term FCF headwinds for the substantial medium to long-term FCF surplus. AI is a once-in-a-lifetime opportunity where the current growth is unprecedented, and the future growth even bigger."

Only time will tell if it plays out as hoped.