Amazon CEO Andy Jassy says AI inference is still an order of magnitude, about 10 times, too expensive for widespread use, and Amazon's own chips are a major part of bringing that cost down. He argues the biggest demand could come from everyday business software once inference is cheap enough, while Amazon still buys many chips from NVIDIA. Amazon expects about $220 billion in capex in 2026, and its free cash flow was a $7.6 billion outflow over the 12 months to June 30, 2026. AWS posted a 39.4% operating margin in the second quarter of 2026, but depreciation rose to 19.1% of AWS sales. Jassy says Trainium offers 30% to 40% better price-performance than comparable processors, and Amazon has disclosed more than $225 billion of Trainium revenue commitments.
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AmazonAndy JassyNVDAartificial intelligencecloud computing
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 210.96 |
| Change that session | -0.59% |
AMZN
▲ Likely positiveAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/23/2026 | 248.00 |
| Change that session | -0.95% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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