{"id":45902,"date":"2026-04-09T17:10:57","date_gmt":"2026-04-09T17:10:57","guid":{"rendered":"https:\/\/foreignnewstoday.com\/?p=45902"},"modified":"2026-04-09T17:10:57","modified_gmt":"2026-04-09T17:10:57","slug":"were-not-going-to-be-conservative","status":"publish","type":"post","link":"https:\/\/foreignnewstoday.com\/?p=45902","title":{"rendered":"We&#8217;re not going to be conservative"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108289279\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108289279\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000409211\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/AMZN\/\">Amazon<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> CEO <a href=\"https:\/\/www.cnbc.com\/video\/2026\/01\/20\/amazon-ceo-andy-jassy-on-ai-the-cost-of-inference-has-to-come-down.html\">Andy Jassy<\/a> on Thursday released his annual <a href=\"https:\/\/www.aboutamazon.com\/news\/company-news\/amazon-ceo-andy-jassy-2025-letter-to-shareholders\" target=\"_blank\">shareholder letter<\/a> and once again made the case to Wall Street investors that the company&#8217;s huge investments in <a href=\"https:\/\/www.cnbc.com\/ai-effect\/\">artificial intelligence<\/a> are worthwhile. <\/p>\n<p>&#8220;We&#8217;re not going to be conservative in how we play this \u2014 we&#8217;re investing to be the meaningful leader, and our future business, operating income, and [free cash flow] will be much larger because of it,&#8221; Jassy wrote.<\/p>\n<p>The company disclosed in February that it expects to spend roughly <a href=\"https:\/\/www.cnbc.com\/2026\/02\/05\/amazon-amzn-q4-earnings-report-2025.html\">$200 billion<\/a> this year on capital expenditures, with the lion&#8217;s share going toward AI infrastructure, including data centers, chips and networking equipment. <\/p>\n<p>That&#8217;s more than any of its <a href=\"https:\/\/www.cnbc.com\/2026\/02\/06\/google-microsoft-meta-amazon-ai-cash.html\">tech peers<\/a>, and a nearly 60% increase from last year.<\/p>\n<p>Amazon shares <a href=\"https:\/\/www.cnbc.com\/2026\/02\/17\/amazon-stock-losing-streak.html\">have struggled<\/a> so far this year as investors question the company&#8217;s aggressive AI spending plans and grow increasingly impatient about when the investments will pay off. <\/p>\n<p>Amazon shares surged more than 5% on Thursday. The stock is up less than 1% year to date.<\/p>\n<p>Jassy <a href=\"https:\/\/www.cnbc.com\/2026\/02\/05\/why-amazons-ceo-is-confident-with-200-billion-spending-plan.html\">has said <\/a>that Amazon needs the capital to go after &#8220;a once-in-a-lifetime opportunity&#8221; and to keep pace with &#8220;very high demand&#8221; for the company&#8217;s AI compute.<\/p>\n<p>He reiterated that argument on Thursday and also disclosed for the first time that AI revenue in its cloud computing segment has hit a $15 billion annual run rate. <\/p>\n<\/div>\n<div class=\"group\">\n<p>&#8220;We&#8217;re not investing approximately $200 billion in capex in 2026 on a hunch,&#8221; Jassy wrote. <\/p>\n<p>He noted specifically the over $100 billion commitment from <a href=\"https:\/\/www.cnbc.com\/2026\/02\/27\/open-ai-funding-round-amazon.html\">OpenAI<\/a>, adding that Amazon has received customer commitments for &#8220;a substantial portion&#8221; of the capex spend and expects to monetize most of it next year and in 2028. <\/p>\n<p>Amazon&#8217;s custom chip business, which includes Graviton processors, Trainium AI chips and Nitro architecture, has notched an annual revenue run rate of more than $20 billion, and is &#8220;growing triple digit percentages&#8221; year over year, Jassy said. <\/p>\n<p>Amazon <a href=\"https:\/\/www.aboutamazon.com\/news\/company-news\/amazon-25-billion-mississippi-data-centers?utm_source=rss\" target=\"_blank\">announced<\/a> separately Thursday it plans to spend $12 billion on new data centers in central Mississippi, bringing its total investment in the state to $25 billion. It said it plans to cover &#8220;all expenses for new energy infrastructure&#8221; and any upgrades to local power grids.<\/p>\n<p>Jassy, who became CEO <a href=\"https:\/\/www.cnbc.com\/2021\/07\/05\/amazon-new-ceo-andy-jassy-takes-over-for-jeff-bezos.html\">in 2021<\/a> when founder <a href=\"https:\/\/www.cnbc.com\/jeff-bezos\/\">Jeff Bezos<\/a> stepped down, called back to his predecessor&#8217;s <a href=\"https:\/\/www.cnbc.com\/2019\/07\/26\/amazons-jeff-bezos-long-term-approach-wall-street-second-quarter-earnings.html\">message to Wall Street<\/a> decades earlier, when Amazon remained unprofitable for many years. <\/p>\n<p>Bezos argued that long-term growth was more important than short-term profits, testing investors&#8217; patience. In the process, Amazon invested significant sums in cloud computing, warehouses and devices. <\/p>\n<p>Amazon eventually churned out sizable profits and grew to dominate new markets.<\/p>\n<p>Jassy said Amazon is seizing on opportunities that could become big &#8220;pillars,&#8221; or growth engines, for the company over time. He pointed to the chips business, which is &#8220;on fire,&#8221; and highlighted growth in its grocery unit, rapid delivery service and nascent Leo satellite internet offering. <\/p>\n<p>&#8220;We are willing to make large capex investments and endure short-term FCF headwinds for the substantial medium to long-term FCF surplus,&#8221; Jassy said.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"256\" height=\"256\" viewbox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveaspectratio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 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transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\" class=\"Collapsible-dismissButton\" alt=\"hide content\"\/><\/div>\n<\/div>\n<p><iframe title=\"Amazon year-to-date stock chart.\" src=\"https:\/\/www.cnbc.com\/appchart?symbol=AMZN&amp;range=YTD&amp;type=mountain&amp;embedded=true&amp;$DEVICE$=undefined\" height=\"460\" scrolling=\"no\" loading=\"lazy\" style=\"border:0;width:100%\"><\/iframe><\/p>\n<p>Amazon year-to-date stock chart.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108288027\">\n<div role=\"button\" 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rel=\"noopener noreferrer\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2026\/04\/09\/amazon-ceo-andy-jassy-ai-spending.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon CEO Andy Jassy on Thursday released his annual shareholder letter and once again made the case to Wall Street investors that the company&#8217;s huge investments&hellip;<\/p>\n","protected":false},"author":1,"featured_media":45903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[32],"tags":[],"class_list":["post-45902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts\/45902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45902"}],"version-history":[{"count":0,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts\/45902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/media\/45903"}],"wp:attachment":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}