Jassy: $350M Annapurna deal is Amazon's best acquisition; chip business at $25B run rate
SumitGup · x · 2026-10-26
In an a16z interview, Andy Jassy called the 2015 $350M Annapurna Labs acquisition one of Amazon's best ever. Key numbers:
- Custom silicon portfolio: Nitro (networking), Graviton (CPU), Trainium (AI ASIC)
- Jassy says the chip business would be a $50B run-rate business if Amazon sold chips directly
- Customer rentals via AWS hit a $25B run rate last quarter
- From the annual letter: AWS at $142B run rate; AI revenue at $15B run rate after 3 years (260x larger than AWS's $58M at the same age)
- Two large AWS partners asked to buy ALL 2026 Graviton capacity (Amazon couldn't fulfill); racks may be sold to third parties in future
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