Investing.com -- Amazon (NASDAQ: AMZN) CEO Andy Jassy disclosed in his annual shareholder letter that the company plans to invest approximately $200 billion in capital expenditures in 2026, primarily focused on artificial intelligence infrastructure.

Jassy revealed that AWS's AI revenue run rate has reached over $15 billion in the first quarter of 2026, representing nearly 260 times the growth rate AWS experienced at a comparable stage in its development. The company added 3.9 gigawatts of new power capacity in 2025 and expects to double total power capacity by the end of 2027.

Amazon reported revenue of $717 billion in 2025, up 12% from $638 billion in 2024. Operating income increased 17% to $80 billion from $69 billion, while free cash flow decreased from $38 billion to $11 billion, driven by a $50.7 billion year-over-year increase in property and equipment purchases related to AI investments.

The company's custom AI chip business, including Graviton, Trainium, and Nitro, has reached an annual revenue run rate of over $20 billion, growing at triple-digit percentages year-over-year. Jassy stated that at scale, Trainium is expected to save tens of billions in capex annually and provide several hundred basis points of operating margin advantage.

AWS reported a $142 billion revenue run rate in the fourth quarter of 2025, representing 24% year-over-year growth. However, Jassy noted the company faces capacity constraints that result in unserved demand.

In retail operations, Amazon launched Amazon Now, an ultra-fast delivery service offering thousands of items within 20 minutes. The service is seeing 25% month-over-month order growth in India, where the company operates more than 360 micro-fulfillment centers. Amazon's grocery business reached over $150 billion in gross sales in 2025, making it the second-largest grocer in the United States.

The company's Prime Air drone delivery service plans to serve communities with 30 million customers by year-end and expects to deliver half a billion packages by the end of the decade. Amazon has built over 85 Same-Day Fulfillment Centers across the United States and delivered more than 500 million same-day units in 2026 thus far.

Amazon Leo, the company's low Earth orbit satellite network, has more than 200 satellites in space and has secured revenue commitments from Delta Air Lines (NYSE: DAL), which will begin service on 500 planes in 2028. Other customers include JetBlue, AT&T (NYSE: T), Vodafone, and NASA.

Jassy stated that much of the AWS capex expected to be spent in 2026 already has customer commitments for a substantial portion, including an over $100 billion commitment from OpenAI.