Shares of Amazon.com Inc. rose more than 5% today after Chief Executive Andy Jassy published his latest shareholder letter.
The memo is the fifth that Jassy has penned since taking the top post in 2021. Amazon’s first shareholder letter was written by founder Jeff Bezos in 1997, the year the company went public.
One potential reason Wall Street responded positively to the letter is that it contains new data about the growth of Amazon Web Services Inc.’s artificial intelligence business. Jassy wrote that Amazon expects to log $200 billion in capital expenditures this year, most of which will go to AI infrastructure. He went on to state that “we already have customer commitments for a substantial portion of it.”
Some of the demand is expected to come from OpenAI Group PBC. In February, the ChatGPT developer committed to using $100 billion worth of AWS services over the next eight years. “There are several other customer agreements completed (and unannounced), or…
