Amazon Just Revealed This 1 Business Is Worth More Than 82% of Fortune 500 Companies (Hint: Not Cloud Computing)

When it comes to industry-leading businesses, precise fewer companies tin clasp a candle to Amazon (NASDAQ: AMZN). While it didn't invent online retail, its occurrence successful e-commerce is the worldly of legend. The institution pioneered modern unreality computing erstwhile it launched Amazon Web Services (AWS) successful 2006, a abstraction it inactive dominates and which present forms the instauration of its concern empire. Amazon's quality to grow into caller businesses has helped marque it 1 of the world's astir palmy companies.

In Amazon's yearly shareholder letter, CEO Andy Jassy conscionable revealed what could yet beryllium 1 of the company's astir palmy ventures yet.

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In Amazon's yearly missive, CEO Andy Jassy waxed poetic astir the way that led him to Amazon and what the company's aboriginal mightiness hold. He besides spoke astatine magnitude astir artificial quality (AI) and wherever the institution fits into the broader landscape.

The biggest revelation was the complaint astatine which Amazon's AI spot concern is accelerating. He noted, "Our chips concern is connected occurrence [which] changes the economics of AWS, and volition beryllium overmuch larger than astir think." In fact, the yearly gross tally complaint of Amazon's chips concern -- which includes the company's Graviton, Trainium, and Nitro chips -- is present implicit $20 cardinal and "growing astatine triple-digit percentages year-over-year." Then, Jassy dropped this nugget:

If our chips concern was a stand-alone business, and sold chips produced this twelvemonth to AWS and different 3rd parties (as different starring chips companies do), our yearly tally complaint would beryllium ~$50 billion. There's truthful overmuch request for our chips that it's rather imaginable we'll merchantability racks of them to 3rd parties successful the future.

For context, Amazon's full gross successful 2025 was $717 billion, truthful this would correspond astir 7% of the company's yearly revenue. Furthermore, astatine $50 cardinal annually, Amazon's AI spot concern would beryllium bigger than 82% of the Fortune 500 companies.

Jassy was adamant that the size of the accidental astatine manus justifies Amazon's plans to walk $200 cardinal successful superior expenditures (capex) successful 2026. In fact, Amazon already has lawsuit commitments for the bulk of this year's capex investment, which the institution volition monetize successful 2027 and 2028. Jassy was besides wide that Amazon won't hesitate to sacrifice short-term results for the semipermanent potential. "AI is simply a once-in-a-lifetime accidental wherever the existent maturation is unprecedented and the aboriginal maturation adjacent bigger," helium wrote.