Summary
In this a16z conversation, Amazon CEO Andy Jassy discusses the company’s roughly $220 billion capital expenditure this year and what it means for the AI buildout. He says Amazon is leaving meaningful demand on the table: AWS capacity for 2026 is sold out, 2027 is largely sold out, and a good chunk of 2028 is already committed.
Jassy reflects on five years as CEO. Amazon’s topline is about 80% higher than in 2021, AWS is nearly three times larger, and advertising revenue is about two and a half times bigger. He cites AWS growth of 36.7% year over year on a $169 billion annual run rate, and explains how the retail fulfillment network was regionalized to cut cost to serve and speed delivery.
The discussion also covers the tradeoffs of scarce data center capacity, power, and memory, including how to allocate memory between HBM for AI accelerators and DRAM for core services. Jassy explains why Amazon will not squeeze long-standing core customers just because AI labs will pay almost anything. He also touches on other bets such as Prime Video, the Amazon Leo satellite network, and autonomous driving. It is essential listening for anyone tracking AI infrastructure demand and cloud competition.
📺 Source: a16z · Published October 23, 2026
🏷️ Format: Interview
