Amazon CEO Targets Nvidia, Intel, Starlink in Letter
Amazon CEO Andy Jassy addressed competition from Nvidia, Intel, Starlink, and other companies in his annual shareholder letter released this week. The letter outlines Amazon’s position in cloud computing, artificial intelligence, and satellite services amid growing market pressures.
Jassy’s comments highlight concerns over Nvidia’s role in AI hardware, Intel’s processor market share, and Starlink’s expansion in broadband connectivity. He points to these rivals as key challenges for Amazon’s AWS division and broader operations. The letter, posted on Amazon’s investor relations site, covers the company’s 2025 performance and future plans.
Details from the Letter
The shareholder letter discusses Amazon’s investments in data centers and custom chips to counter Nvidia’s graphics processing units used in AI training. Jassy notes that reliance on third-party suppliers like Nvidia increases costs for AWS customers. He also mentions Intel’s efforts to regain ground in server chips, which compete directly with Amazon’s Graviton processors.
On Starlink, operated by SpaceX, Jassy raises issues with satellite internet’s impact on rural broadband markets where Amazon aims to expand through Project Kuiper. The letter describes Kuiper as Amazon’s response to such competitors, with plans for thousands of satellites by late 2026. Additional targets include other tech firms influencing e-commerce logistics and advertising.
Amazon reported $600 billion in revenue for 2025, with AWS contributing over 15% of that total. Jassy attributes growth to cloud services but warns of competitive threats that could affect margins.
Background on Competition
Amazon has faced intensified rivalry in AI and cloud sectors. Nvidia holds about 80% of the AI chip market, according to industry reports. Intel, meanwhile, partners with cloud providers while developing its own AI accelerators. Starlink, with over 6,000 satellites in orbit, provides internet to remote areas, overlapping with Amazon’s ambitions.
This marks the third year Jassy has used the shareholder letter to signal strategic shifts. Past letters focused on e-commerce recovery post-pandemic and sustainability goals. The current one emphasizes self-reliance in hardware to reduce dependence on suppliers.
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Statements and Reactions
Jassy stated that Amazon must “build our own capabilities” to stay competitive, according to the letter. He added that external dependencies “limit our control over innovation pace.”
Analysts view the remarks as a call for diversified supply chains. One expert from Gartner said Amazon’s approach aligns with industry trends toward in-house development. Nvidia and Intel have not commented publicly on the letter as of Thursday.
Starlink representatives previously described their service as complementary to terrestrial networks, not a direct threat.
Future Outlook
Amazon plans to launch more Kuiper satellites in the coming months, with full operations expected by 2029. The company also intends to increase AWS capacity for AI workloads. Jassy’s letter ends with optimism about long-term growth, projecting double-digit revenue increases through 2030.
Shareholders will discuss the letter at Amazon’s annual meeting in June 2026. Investors reacted positively, with Amazon stock rising 2% following the release.
The letter underscores Amazon’s strategy to address rivals head-on, potentially reshaping alliances in tech. As competition evolves, Amazon’s moves could influence pricing and innovation across sectors.
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