India, April 9 -- Amazon's CEO Andy Jassy is standing firm on the company's big spending in artificial intelligence, as he highlighted in his annual letter to shareholders. He believes that the hefty investments made today will lead to much stronger growth and cash flow down the line.

Looking ahead, Amazon plans to allocate around $200 billion for capital expenditures by 2026, focusing mainly on AI infrastructure like data centers, chips, and networking.

Jassy made it clear that they're not holding back, aiming to be a top player in AI with the rising need for computing power.

In addition, Amazon shared that its cloud division's AI-related revenue has hit a $15 billion annual run rate. The custom chip segment, which features Graviton a...