NEWS · COMPANIES · #2813
Jassy: AWS can be a $1T business; Amazon to boost capex for AI infrastructure
Amazon CEO Andy Jassy said AWS could become a trillion-dollar annual-revenue business within five to ten years and disclosed plans to ramp capital expenditures — roughly $220 billion in cash capex in 2026, mostly for AWS — with meaningful increases expected in 2027 to build AI and cloud capacity. He cited strong revenue growth (about a 39% YoY increase and a $184B run rate) and forecast AWS growth north of 40% in 2027 and 2028, even as investors questioned the large near-term spending.
KEY POINTS
- Amazon CEO Andy Jassy said AWS could become a trillion-dollar annual-revenue business within five to ten years and disclosed plans to ramp capital expenditures — roughly $220 billion in cash capex in 2026, mostly for AWS — with meaningful increases expected in 2027 to build AI and cloud capacity.
- He cited strong revenue growth (about a 39% YoY increase and a $184B run rate) and forecast AWS growth north of 40% in 2027 and 2028, even as investors questioned the large near-term spending.
- The commitment to massive AWS capex to scale AI-focused cloud capacity signals how AI demand is reshaping cloud providers’ investment plans and could materially change Amazon’s revenue and competitive position.
WHY IT MATTERS
The commitment to massive AWS capex to scale AI-focused cloud capacity signals how AI demand is reshaping cloud providers’ investment plans and could materially change Amazon’s revenue and competitive position.