Amazon CEO Andy Jassy defended the company’s multibillion-dollar push into artificial intelligence on Thursday, calling the aggressive investment vital for staying ahead in a rapidly evolving tech landscape.
In his annual letter to shareholders, Jassy said, “If your mission is to make customers’ lives better and easier every day, and you believe every customer experience will be reinvented by AI, you’re going to invest deeply and broadly in AI.” He emphasized that acquiring AI chips and building out data center infrastructure requires significant capital.
The CEO added that customers, shareholders, and the business as a whole would benefit from Amazon’s bold commitment to AI today. This includes ventures into generative AI—such as chatbots tailored for sellers, businesses, and consumers—and the AI-enhanced relaunch of Alexa last month, now known as Alexa+ and integrated with Claude, software from Amazon-backed startup Anthropic. Amazon has invested approximately $8 billion in Anthropic.
Jassy’s remarks echoed similar sentiments from Alphabet CEO Sundar Pichai, who said earlier this week that Google plans to spend $75 billion this year to expand its data center capabilities in response to surging AI demand.
Tariff Uncertainty Has Yet to Dent Consumer Demand
Despite market turbulence linked to potential U.S. import tariffs—particularly on Chinese goods—Jassy avoided the topic in his shareholder letter. In a later CNBC interview, he confirmed Amazon has pre-ordered some inventory to manage potential supply chain disruptions but said there’s no notable drop in demand for discretionary products.
“People have not stopped buying,” Jassy said. “There’s some early buying in certain categories, but it’s unclear if that’s trend-driven or a one-off. So far, we haven’t seen meaningful changes in consumer behavior.”
Other retail giants are also taking notice. Walmart, for instance, vowed to maintain low prices amid shopping volatility triggered partly by tariff concerns.
Steady Growth Despite Market Slide
Amazon’s stock has dropped 13% so far this year—less than Alphabet and Apple but more than Microsoft, which is down 7%. Nonetheless, Jassy confirmed that tariff worries have not impacted Amazon’s plans to expand its data centers, citing overwhelming demand for AWS and AI-related services.
In line with tradition, Amazon included founder Jeff Bezos’ original 1997 shareholder letter in the report—considered a foundational document by analysts, investors, and employees alike.
Executive Pay, Proxy Changes, and DEI Language Removed
Amazon’s proxy filing revealed that Jassy earned $40.1 million in total compensation last year, up from $29.2 million, mainly due to a rise in the company’s stock.
The company also disclosed eight shareholder proposals touching on sustainability, AI data usage, and warehouse working conditions—though Amazon has recommended voting against all of them.
Interestingly, the company eliminated all references to “diversity, equity and inclusion” (DEI) from the filing. Last year’s proxy mentioned DEI 21 times, including as areas of expertise for board members Jamie S. Gorelick and Jonathan J. Rubinstein. Those references have now been replaced with a focus on creating “inclusive experiences.”
