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we believe these are going to be two of the most successful companies in this space over a long period of time.
But Intel had virtually all of the CPU share. And when you have a partner who has virtually all the share, they're not often thinking about how to drive price performance. They're trying to think about other features that allow them to get more share and drive more revenue.
Anthropic, they made a multi-year, multi-gigawatt commitment to Trainium.
we had so many customers who wanted to use OpenAI and AWS, and they weren't able to do so because of their prior business arrangements that they had. And, you know, for a long time, I think the companies had a lot of mutual respect and desire to work together. And so, this is another one of those where over a series of conversations and months, the ability to be able to run OpenAI in Bedrock, you know, we built a unique product together in the stateful runtime environment, which is how I think a
customers are most successful running Anthropic in Bedrock.
we believe these are going to be two of the most successful companies in this space over a long period of time.
our chips business is a big piece of that.
The cost of inference has come down quite a bit in the last few years, but it's still an order of magnitude too expensive, in my opinion, for it to be used as pervasively as possible.
about 30% to 40% more price performance than the other comparable processors.
99% of our top 1,000 EC2 customers use it very pervasively today. It's about 40% more price performance than other x86 processors.
we're very passionate about continuing to be the significant leader in the infrastructure and AI space like we've been
we foresaw some pieces, but I don't think that we did not make the Annapurna purchase for AI chips, per se.
we really liked the team and we really liked the product
we could spend a lot more, and it wouldn't be a bad use of capital
I think we'll see them in different components for several years
we're spending $220 billion or so this year
we're not going to squeeze our customers
we're probably putting more capacity in than anybody else
We felt like that business could be a few hundred billion dollars of revenue over a long period of time, figure over 10 years.
Last quarter we grew 36.7% year over year on $169 billion annual revenue run rate business.
Even spending $220 billion this year, we're leaving a meaningful amount of demand on the table. ... 26 is obviously sold out. 26 is largely sold out. A good chunk of 26 is sold out.
the ability to be able to run OpenAI in Bedrock, you know, we built a unique product together in the stateful runtime environment
Anthropic, they made a multi-year, multi-gigawatt commitment to Tranium.
I think it's been very good for Anthropic. I think it's been very good for our Tranium team.
I think customers are most successful running Anthropic in Bedrock.
our chips business is a big piece of that
The cost of inference has come down quite a bit in the last few years, but it's still an order of magnitude too expensive, in my opinion, for it to be used as pervasively as possible.
Tranium, which is also about 30% to 40% more price performance than the other comparable processors.
It's about 40% more price performance than other x86 processors.
That, on average, they, you know, they tend to break even in about three years. And they have useful lives at this point of about five to six years. And most of the deals we're doing are about five-year deals.
when you are building as fast as we're building with so many data centers simultaneously, you're going to spend a lot of capital and your free cash flow is going to have headwinds in those years until you get to those later stages, you know, a few years down the road where all those data centers are online and they're all being monetized and you're making back your money from the server and the network investment.
The data center piece, you have to invest, you know, about two years in advance of when you can put servers in the data centers and start to monetize that. The good news is you only make that investment once. It's a useful life asset. It's about 30 years, but you make that a couple years in advance.
we've said this year in 2026, we expect to spend about $220 billion of CapEx.
In the first three years of this gender of AI wave, our business, or just our AI business in AWS is over $25 billion in run rate. So it's several hundred times faster.
We're excited to make OpenAI's models available directly to consumers on Bedrock in the coming weeks.