Amazon (AMZN) Q4 FY2025 Earnings Call Transcript

Date: February 5, 2026 | Source: Motley Fool (full verbatim transcript)

---

Dave Fildes (Director, Investor Relations, Amazon): Hello, and welcome to our Q4 2025 financial results conference call. Joining us today to answer your questions is Andrew Jassy, our CEO, and Brian T. Olsavsky, our CFO. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2024. Our comments and responses to your questions reflect management's views as of today, February 5, 2026, only and will include forward-looking statements. Actual results may differ materially.

Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings. During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast, and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we have seen today and what we believe today to be appropriate assumptions.

Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed in our filings with the SEC. Our guidance assumes, among other things, that we do not conclude any additional business acquisitions, restructurings, or legal settlements.

It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. And now I'll turn the call over to Andrew Jassy.

Andrew Jassy (CEO, Amazon): Thanks, Dave. We are reporting $213.4 billion in revenue, up 12% year over year excluding the impact from foreign exchange rates. Operating income was $25 billion, and trailing twelve-month free cash flow was $11.2 billion. We are seeing strong growth, and with the incremental opportunities available to us in areas like AI, chips, low earth orbit satellites, quick commerce, and serving more consumers' everyday essentials needs, we have a chance to build an even more meaningful business in Amazon.com, Inc. in the coming years. With strong return on invested capital, and we are investing to do so. We are already seeing strong demand in these areas even in these early innings. I'll start with AWS.

AWS growth continued to accelerate to 24%, the fastest we've seen in thirteen quarters. Up $2.6 billion quarter over quarter and nearly $7 billion year over year. AWS is now a $142 billion annualized run rate business. And our chips business, inclusive of Graviton and Trainium, is now over $10 billion in annual revenue run rate growing triple-digit percentages year over year. As a reminder, it's very different having 24% year-over-year growth on a $142 billion annualized run rate than to have a higher percentage growth on a meaningfully smaller base which is the case with our competitors. We continue to add more incremental revenue and capacity than others, and extend our leadership position.

AWS continues to earn most of the big enterprise and government transitions to cloud. Since our last call, we announced new agreements with OpenAI, Visa, MBA, BlackRock, Perplexity, Lyft, United Airlines, DoorDash, Salesforce, US Air Force, Adobe, Thomson Reuters, AT&T, S&P Global, National Bank of Canada, the London Stock Exchange, Choice Hotels, Accenture, Indeed, HSBC, CrowdStrike, and many more. More of the top 500 US startups use AWS as their primary cloud provider than the next two providers combined.

We are adding significant EC2 core computing capacity each day, the majority of that new compute is using our custom CPU silicon Graviton. Graviton is up to 40% more price performance than leading x86 processors and is used expansively by over 90% of AWS's top thousand customers. Graviton itself is a multibillion-dollar annualized run rate business growing more than 50% year over year. We consistently see customers wanting to run their AI workloads where the rest of their applications and data are. We are also seeing that as customers run large AI workloads on AWS, they are adding to their core AWS footprint as well.

But the biggest reason that AWS continues to gain AI share is our uniquely broad top-to-bottom AI stack functionality. In AI, we are doing what we've always done in AWS, solving customer challenges. The first challenge is having a strong foundation model to generate inferences or predictions. Customers are realizing as they get further into AI that they need choice. As different models are better on different dimensions. In fact, most sophisticated AI applications leverage multiple models. Whether customers want frontier models like Anthropic Claude, or open models like Mistral or Llama, Frontier Intelligence will lower cost and latency like Amazon Nova. Or video and audio models like Twelve Labs or NovaSonic.

Amazon Bedrock makes it easy to use these models to run inference scalably, and performantly. Bedrock is now a multibillion-dollar annualized run rate business, and customer spend grew 60% quarter over quarter. The second challenge is how to hone the model for your application. Customers sometimes think if they have a good model, they will have a good AI application. It's not really true. It takes a lot of work to post-train and fine-tune a model for your application. Our SageMaker AI service along with fine-tuning tools in Bedrock make this much easier for customers. A third challenge is how to have a custom version of a foundation that best leverages the company's secret sauce, their own data.

To date, companies have tried to shape models with their own data late in the process, usually with fine-tuning or post-training. There's debate in the industry about this, but we believe that enterprises will want models trained on their own data at an early stage, at pre-training if possible, so their models have the best possible foundation for what matters most to each enterprise on which to learn and evolve. To solve for this need, we just launched NovaForge. Which gives customers early checkpoints on our Amazon Nova models, allows them to securely mix their own proprietary data with the model's data in the pre-training stage, and enables their own uniquely customized versions of Nova. What we call novellas, trained with their data early in the process. This will be very useful for companies as they build their own agents on top of the model. There is nothing else out there like this today and a potential game changer for companies. Another challenge is cost. I've said this many times, but if we want AI to be used as expansively as companies want, we have to make the cost of inference lower.

A significant impediment today is the cost of AI chips. Customers are starving for better price performance and typically and understandably, the dominant early leaders aren't in a hurry to make that happen. It's why we built our own custom silicon in Trainium. And it's really taken off. We've landed over 1.4 million Trainium two chips, our fastest ramping chip launch ever. Trainium two is 30 to 40% more price performance than comparable GPUs. It is a multibillion-dollar annualized revenue run rate business with 100,000 plus companies using it, and it's serving as the majority underpinning of Bedrock usage today. We recently launched Trainium three, which is up to 40% more price performance than Trainium two. We are seeing very strong demand for Trainium three and expect nearly all of our Trainium three supply of chips to be committed by mid-2026. And though we are still building Trainium four, we are seeing very strong interest already. Looking ahead, the primary way companies will get value from AI is with agents.

It's harder to build agents than it should be. For that, we've built services enabling agents to be created from any model. Once agents are built, enterprises are apprehensive about deploying to production because these agents need to securely and scalably connect to compute, data tools, memory, identity, policy governance, performance monitoring, and other elements. This is a new and hard problem where a solution has not existed until we launched Bedrock Agent Corp. Customers are quite excited about Agent Core, and it's unlocking deployments. Customers also want to leverage others' useful agents, and we've built several, including Kiro for coding, Amazon Quick for knowledge workers to leverage their own data and analytics, AWS Transform for software migration, and Amazon Connect for call center operations. We continue adding new capabilities, and usage continues to grow quickly. For example, the number of developers using Kiro grew more than 150% quarter over quarter. In addition to agents that customers direct, customers are also becoming excited about agents that require less human interaction. They can be fully autonomous, run persistently for hours or days, scale out quickly, and remember context. At this past AWS re:Invent, we launched Frontier Agents to do that. Kiro autonomous agents for coding tasks, AWS DevOps agents for detecting and resolving operational issues, and AWS security agents for proactively securing applications throughout the development life cycle.

We expect to invest about $200 billion in capital expenditures across Amazon.com, Inc., but predominantly in AWS, because we have very high demand. Customers really want AWS for core and AI workloads. And we are monetizing capacity as fast as we can install it. We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital. We are confident this will be the case here as well. I'll now turn to stores.

We continue to expand selection, including more than 400 new beauty brands in the US in 2025, like Bobbi Brown Cosmetics, Charlotte Tilbury, and Laura Mercier, and new fashion brands like Away Luggage, Converse, Diesel, Michael Kors, Nike, and The North Face. Our ultra-low priced offering, Amazon Haul, grew selection to over a million items under $10 and expanded to serve customers in more than 25 countries and regions. We continue to see strong customer response to everyday essentials and grocery. In 2025, everyday essentials grew nearly twice as fast as all other categories in the US, representing one out of three units sold in our store. And we've become a go-to grocery destination for over 150 million Americans. Mostly through online shopping and Whole Foods. With over $150 billion in gross sales, Amazon.com, Inc. is clearly a large grocer at this point.

Customers in thousands of US cities and towns can now get perishables delivered same day alongside millions of other items. And customers who use that service shop more than twice as often as customers who don't. We plan to expand in many more communities in 2026, and we also plan to open more than 100 new Whole Foods Market stores over the next few years as we work to make grocery shopping easier, and more affordable for customers. We remain committed to staying sharp on price. And continue to meet or beat other retailers' prices. A recent study from Profitero showed that Amazon.com, Inc. is America's lowest priced retailer for the ninth straight year, 14% lower on average than other major online retailers. We again achieved our fastest ever delivery speeds for Prime members around the world in 2025. In the US, we delivered nearly 70% more items same day than the year before.

We also continue increasing speed for rural customers with nearly two times more average monthly customers in rural areas receiving same day delivery year over year. Same day is our fastest growing delivery offering and nearly 100 million customers used it last year in the US. And the team is continuing to innovate. We've launched Amazon Now in India, Mexico, and the UAE. Ultrafast delivery on thousands of items in about thirty minutes or less. And we are testing it in several communities in the US and UK. It's early, but customers are loving it. For example, in India, customer response exceeded our most optimistic expectations, and we are seeing Prime members triple their shopping frequency once they start using it. Expanding our same day delivery coverage also leads to meaningfully later cutoff times for orders. For example, on Christmas Eve, customers in about 4,000 US cities could order items up until midday and get them that same day.

Another example is our recently launched feature add to delivery, which enables Prime members in the US to add items to their upcoming Amazon.com, Inc. deliveries with just one tap without going through checkout again or paying additional shipping fees. Just six months after launch, add to delivery already makes up about 10% of all Prime volume fulfilled through the Amazon.com, Inc. network each week. The stores team is also continuing to innovate and deliver for customers with AI. Our agentic AI shopping assistant, Rufus, is rapidly expanding. Rufus can research products, track prices, and auto buy. Purchasing a product in our store when it reaches your set price. It can also now shop tens of millions of items in other online stores and make purchases for customers using our agentic buy for me feature. Last year, more than 300 million customers used Rufus. In addition, customers used Lens, our AI powered visual search tool, to find products with a phone's camera, a screenshot, or a barcode. And they did it 45% more year over year.

Moving on to Amazon Ads. We are pleased with the continued strong growth across our full funnel offerings generating $21.3 billion of revenue in the quarter and growing 22% year over year. Sponsored products advertising in our store continues to be our largest ads offering, and the combination of trillions of shopping, browsing, and streaming signals with advanced AI and machine learning led us to deliver highly relevant useful ads for customers. We saw continued growth in Prime Video ads, which is now available in 16 countries and is contributing meaningfully to our revenue growth. Prime Video has an average ad supported audience of 315 million viewers globally, up from 200 million in early 2024. Our ads team is also innovating with AI. We recently announced our ads agent, which lets brands use AI to create and optimize campaigns at scale, and our creative agent lets advertisers research, brainstorm, and generate full funnel ad campaigns from concept to completion.

We are also continuing to invent and see momentum in several other areas. Starting with live sports on Prime. The fourth season of Thursday night football broke more records. It was our most watched season ever, averaging more than 15 million viewers, a 16% year over year increase, and a third consecutive year of double digit growth. And the Packers versus Bears wild card game was the most streamed NFL game in history with 31.6 million viewers. We just made Alexa Plus available to all customers in the US, free for Prime members and $19.99 a month for non-Prime members. Alexa Plus continues to get even better and more capable and we've added new ways to interact with Alexa, including a new chat experience at alexa.com, a redesigned mobile app, and new integrations with third party devices like Samsung TVs and BMW cars.

And finally, the team is making rapid progress on Amazon LEO, which will bring connectivity to consumers, enterprises, and governments in places where they don't have broadband connectivity. Our enterprise grade customer terminal, LEO Ultra, is the fastest satellite Internet antenna ever built, delivering simultaneous download speeds of up to one gigabit per second and upload speeds of up to 400 megabits per second. LEO will offer enterprise grade performance and advanced encryption with secure private networking that bypasses public Internet, connecting directly to AWS. We've launched 180 satellites, have more than 20 launches planned in 2026, more than 30 in 2027, and expect to launch commercially in 2026. We have dozens of commercial agreements already signed, including with AT&T, DIRECTV Latin America, JetBlue, and Australia's national broadband network. It's been an action-packed year of innovation and progress and we've hit the ground running in 2026.

With that, I'll turn it over to Brian for a financial update.

Brian T. Olsavsky (CFO, Amazon): Thanks, Andy. Starting with our top line financial results. Worldwide revenue was $213.4 billion, a 12% increase year over year excluding the 150 basis points favorable impact of foreign exchange. In Q4, we reported worldwide operating income of $25 billion. This operating income includes three special charges, which reduced operating income by $2.4 billion. The first charge of $1.1 billion is for the resolution of tax disputes associated with our stores business in Italy, and the settlement of a lawsuit. The second charge is $730 million for the estimated severance costs. The third charge of $610 million is for asset impairments primarily related to physical stores.

Moving on to our segment results. In the North America segment, fourth quarter revenue was $127.1 billion, an increase of 10% year over year. International segment revenue was $50.7 billion, an increase of 11% year over year excluding the impact of foreign exchange. Worldwide paid units grew 12% year over year, our highest quarterly growth rate in 2025. In Q4, worldwide third-party seller unit mix was 61%. Shifting to profitability, North America segment operating income was $11.5 billion with an operating margin of 9%, up from an 8% margin in 2024. International segment operating income was $1 billion with an operating margin of 2.1%. Excluding the impact of special charges, International segment operating margins also expanded year over year.

Last year, US Prime members received over 8 billion items the same or next day, up more than 30% year over year, with groceries and everyday essentials making up half of the total items. For the third year in a row, globally in 2025, we achieved both our fastest ever delivery speeds for Prime members while also reducing our cost to serve. By leveraging our existing US network, we can now deliver perishable groceries to customers in more than 2,300 cities and towns, all with same day delivery. Shifting to advertising. Advertising revenue grew 22% in the fourth quarter and we added over $12 billion of incremental revenue in 2025 alone.

Moving next to our AWS segment. Revenue was $35.6 billion, and growth accelerated to 24% year over year. We added $2.6 billion in quarter over quarter revenue and AWS now has an annualized revenue run rate of $142 billion. This acceleration was driven by both core and AI services as customers continue to modernize their infrastructure and migrate workloads to the cloud. This growth was helped in part by the more than one gigawatt of capacity we added in Q4. In 2025, AWS added more data center capacity than any other company in the world. AWS operating income was $12.5 billion. Turning to cash flows. Our full year operating cash flow increased to $139.5 billion in 2025, up 20% year over year due primarily to improved operating income and changes in working capital.

Now turning to our Q1 financial guidance. Q1 net sales are expected to be between $173.5 billion and $178.5 billion. This guidance anticipates a favorable impact of approximately 180 basis points from foreign exchange rates. Q1 operating income is expected to be between $16.5 billion and $21.5 billion. A few things to mention on the operating income guidance. Within the North America segment, we do expect a year over year cost increase of approximately $1 billion related to Amazon LEO. We have more than 20 launches planned in 2026, and more than 30 in 2027, which means we are spending more on launching satellites each year. Select enterprise customers are testing Amazon LEO services now, and we expect a wider commercial rollout later this year. As a reminder, today we do expense most of these LEO costs as incurred. We expect that later in the year, many of these costs, such as satellite manufacturing and launch services, will be capitalized. Within the international segment, we are continuing to invest more in our stores business to enhance the customer experience and to encourage retail demand to move online more quickly.

As we enter 2026, I'm energized by our team's strong execution. I want to thank everyone across the company for their hard work on behalf of our customers. We remain focused on driving an even better customer experience which is the only reliable way to create lasting value for our shareholders. With that, let's move on to your questions.

Questions & Answers

Mark Mahaney (Evercore ISI): Okay. Thanks. I think, Brian, let me throw this to you or maybe to Andy. On the strong long-term return on invested capital, I think that's the debate in the market today. So could you give us a little bit more insight into how you think investors will be able to see that? Either, talk about the duration of the CapEx cycle that you're going through now or, what we should see in terms of profitability levels? And maybe also talk about, like, de minimis or minimum free cash flow generation levels that you don't want to go below as you go through this CapEx cycle?

Brian T. Olsavsky (CFO, Amazon): On the investments we are making, we are putting into service with customers all capacity that we are getting, and it's immediately useful. And we are also seeing a long arc of additional revenue that we see from other customers and backlog and commitments of people are anxious to make with us, especially for AI services. AWS is 35% operating margin through Q4, up 40 basis points year over year. That is going to fluctuate over time. It certainly has a headwind from the investments in AI and the depreciation on that CapEx. But we also work very hard to offset that with efficiencies and cost reduction. We see long strong return on invested capital. If you look at the capital we are spending and intend to spend this year, it's predominantly in AWS. And some of it is for our core workloads which are our non-AI workloads because they are growing at a faster rate than we anticipated. But most of it is in AI and we just have a lot of growth and a lot of demand. When you are growing 24% year over year with an annualized revenue run rate of $142 billion, you are growing a lot. As fast as we install this AI capacity, we are monetizing it. So it's just a very unusual opportunity. We are gonna invest aggressively here, and we are gonna invest to be the leader in this space as we have been for the last number of years. You're gonna keep seeing all the inference services, which is gonna be the majority of the long-term AI workloads. You're gonna see the inference keep getting optimized, higher utilization on those services, and prices normalize over a period of time. And then I think the companies that have the excellence in infrastructure and also the components that give customers better price performance and give those companies themselves better economics are going to have advantaged financials. We're already off to a really good start having Trainium underneath the majority of our Bedrock service, and that's not just giving customers better prices but it also gives us better economics.

Douglas Anmuth (JPMorgan): Thanks so much for taking the questions. Can you just talk about how Project Rainier is running with Anthropic after first full quarter? And I think in the release, it talks about 500,000 chips, but a few months ago, you talked about getting to 1,000,000 as well. If you could clarify that. And then maybe just a follow-up on Mark's question, are there any financial guardrails or governors in place that we should think about around the spend just in terms of operating income growth? Or positive free cash flow?

Andrew Jassy (CEO, Amazon): I'll start with the training piece. We are very excited about the growth that we see in Trainium and the future that we have there. In the early innings of AI, customers are really thirsty for better price performance. And Trainium has 30% to 40% better price performance than comparable GPUs, so it's very compelling to customers. You mentioned Project Rainier — Anthropic is training the next Claude model on top of Trainium two, and that's what Project Rainier is. We talked about 500,000 chips there. You will see that continuing to increase. They're also using a fair bit of Trainium-two for other workloads and their own APIs beyond just Project Rainier, but Trainium is a multibillion-dollar annualized run rate business at this point and it's fully subscribed. And Trainium three, which we just started shipping, is 40% more price performance than Trainium two. We expect that nearly all of that supply will be committed by somewhere around the middle of this year. And we're just in the process of building Trainium four, coming in 2027, and already having conversations about Trainium five. If you combine Trainium and Graviton, it's well over a $10 billion annualized run rate business and it's still very early. Project Rainier has gone very well, Anthropic is quite pleased with it. This is big business that's getting bigger and has a lot of potential. We see this as an unusual opportunity and we are going to invest aggressively to be the leaders.

Ross Sandler (Barclays): Great. Andy, you mentioned how the AI market was currently a bit top heavy with a lot of the spend kinda clustering around a few of the AI native labs. So how is that changing as you look out into '26? And, specifically, how do you think you might extend your relationship with a company like OpenAI to maybe help Amazon's AI efforts both on the retail side and the AWS side?

Andrew Jassy (CEO, Amazon): The way I would describe what we see right now in the AI space is it's really kind of a barbelled market demand where on one end you have the AI labs who are spending gobs and gobs of compute right now along with a couple runaway applications. And then at the other side of the barbell, you've got a lot of enterprises who are getting value out of AI in doing productivity and cost avoidance types of workloads. And then in that middle of the barbell are all the enterprise production workloads. I would say that the enterprises are in various stages at this point of evaluating how to move those, working on moving those, putting them into production. But I think that middle part of the barbell very well may end up being the largest and the most durable. When I look at this and what's happening it's kind of unbelievable if you look at the demand of what you're seeing already with AI, but the lion's share of that demand is still yet to come in the middle of that barbell. And that will come over time as you have more and more companies with AI talent, as inference continues to get less expensive — and that's a big piece of what we're trying to do with Trainium and our hardware strategy. We announced an agreement with OpenAI in November. We're excited about that agreement. It's a big one and we have a lot of respect for the company and we hope to continue to extend our partnership over time, but this AI movement is not going to be a couple of companies. It's gonna be thousands of companies over time.

Michael Morton (MoffettNathanson): Hi, good evening. This one's on the retail business. Andy, you've talked about how you're passionate this is going to change experiences across the board. And you've shared some encouraging data points on Rufus. And we're seeing all the other Internet platforms roll out agentic protocols. I would love to see how you think this plays out for the retail business. And the on-site ads portion of the retail businesses. What seems like it could be a compression in the funnel as consumers get better answers over time?

Andrew Jassy (CEO, Amazon): I'm very optimistic about the customer experience that will ultimately be what customers use for agentic shopping. And I think it's good for customers. It's a big piece of why we've invested as significantly as we have in our own shopping assistant in Rufus. We have 300 million customers who used Rufus in 2025. Customers who used Rufus are about 60% more likely to complete a purchase. At the same time, we will have relationships with third-party horizontal agents that can enable shopping as well. We have to collectively figure out a better customer experience — these horizontal agents don't have any of your shopping history, they get a lot of the product details wrong, they get a lot of the pricing wrong. I think a lot of customers are ultimately gonna choose to use a great shopping agent from that retailer. Horizontal agents are pretty good at aggregating selection, but retailers are much better at doing all four of those items: broad selection, low prices, really fast delivery, and a retailer they can trust that takes care of them. So I'm very optimistic that people will use our shopping agent — it's off to a great start — and I also expect that we'll work with other third-party agents over time.

Brian Thomas Nowak (Morgan Stanley): Thanks for taking my question. Andy, I want to ask you one about the global retail business. This year there's a lot of areas of investment in it that you're talking about to improve the service, make it more durable over the long term. But I'm assuming there are also sources of efficiency you expect to see this year. So can you sort of help us understand both sides of the ledger on retail this year? Where are the areas where you see potential for sources of efficiency and cost to serve savings, and where should we be thinking about areas of investment to drive more durable growth, robotics, etcetera?

Andrew Jassy (CEO, Amazon): On the side of continuing to invest, to keep growing the retail business, the core drivers of demand continue to be the same. We are gonna work really hard to expand selection, and you'll see it on both ends of the spectrum — more luxury brands, and we're working really hard to continue to expand the amount of everyday essentials. Everyday essentials grew nearly twice as fast as all other categories, one out of three units now. It's just our speed of delivery improvements over the last three years that's been really meaningful. And along that speed of delivery piece, it's interesting what's happening with quick commerce. We have this offering called Amazon Now, largely started outside the US in India and the UAE, that gets thousands of items to customers within thirty minutes. In India, customers who try quick commerce are shopping with triple the frequency. On the efficiencies side, we always have a very long list of these. If you look at regionalization in our fulfillment network, particularly in the US, we've extended the number of regions — it was eight, it's now ten. We've made a huge amount of progress in being able to get more units into each box, which obviously saves shipments and drives better operating income. And robotics, as you mentioned, is another big one for us. We have over a million robots today in our fulfillment network. Still a fraction of what I think we are going to be able to enable over time, which will allow better productivity for the business, safer for teammates, and there's real cost efficiencies in that as well. So a lot on both sides of the ledger as always.

Eric Sheridan (Goldman Sachs): Thanks so much for taking the question. Maybe a few parts just on AWS. Can you speak to the current state of your revenue backlog as of Q4? And also discuss a little bit about what you see both for internal use cases and external client needs with respect to any imbalance between supply and demand around AI efforts? And how you think about closing the gap on those as more capacity comes online through 2026?

Andrew Jassy (CEO, Amazon): On backlog, our backlog is $244 billion. That's up 40% year over year. I think it's up 22% quarter over quarter. There's a lot of demand for AWS right now, in the AI space and also in the core AWS space. On internal and external use cases — the vast majority of the capital that we spend and the capacity that we have is consumed by external customers. We have all sorts of ways that we are using AI internally — over a thousand AI applications that we've either deployed or in the process of building, ranging from Rufus to Alexa Plus, to applications in our fulfillment network, to our customer service chatbot, to how we make it much easier for brands to create advertisements. Externally, I would say it's kind of what I said earlier — you have AI labs consuming lots and lots of capacity, both for training as well as for inference, and enterprises running all sorts of workloads. On supply and demand — we're growing 24% year over year on a $142 billion annualized run rate business. I think every provider would tell you, including us, that we could actually grow faster if we had all the supply that we could take. So we are being incredibly scrappy around that. In the last twelve months, we added 3.99 gigawatts of power, which is twice what we had in 2022 when we were an $80 billion annual run rate business. We expect to double it again by '27. We added 1.2 gigawatts of power in Q4 just quarter over quarter. We'll add a lot more in '26, '27, and '28 for that matter, and we're very optimistic we can continue to grow in the ballpark of what we have.

Dave Fildes (Director, Investor Relations, Amazon): Thanks for joining us on the call today and for your questions. A replay will be available on our Investor Relations website for at least three months. We appreciate your interest in Amazon.com, Inc., and we look forward to talking with you again next quarter.