Andy Jassy Says AWS Could Become a $1 Trillion Business—After a Big Spending Push
Amazon CEO Andy Jassy reiterated that he believes AWS could become a trillion-dollar annual revenue business within five to 10 years. But reaching that scale will require a major expansion of Amazon’s investment in cloud infrastructure.
On the company’s quarterly earnings call Thursday, Jassy said Amazon expects to spend about $220 billion in cash capital expenditures in 2026, with most of it going toward AWS. He added that spending is expected to rise substantially in 2027, with Amazon expecting a clear path to financial returns.
Investors have questioned the scale of Amazon’s AI infrastructure spending and whether demand will deliver the growth and profits needed to justify it. Jassy argued that the company is investing to capture a historic surge in cloud demand driven by AI.
AWS revenue grew 39% year over year, marking its sixth consecutive quarter of steady growth. Jassy said AWS currently has an annualized revenue run rate of $184 billion and could grow by more than 40% in both 2027 and 2028.
He described enterprise AI adoption as being in its early stages and called the current boom a “once in a lifetime opportunity.” Amazon, he said, can fund the investment and intends to spend what it takes to remain a cloud leader.
Investors were not fully reassured: Amazon shares fell about 6% in after-hours trading Thursday.
The spending race extends across the cloud sector. AI services rely on cloud infrastructure, and major providers are investing heavily to meet demand. Microsoft has also reported record revenue growth, largely driven by its cloud business, while ramping up its own AI-related capital spending.
Discover the pinnacle of WordPress auto blogging technology with AutomationTools.AI. Harnessing the power of cutting-edge AI algorithms, AutomationTools.AI emerges as the foremost solution for effortlessly curating content from RSS feeds directly to your WordPress platform. Say goodbye to manual content curation and hello to seamless automation, as this innovative tool streamlines the process, saving you time and effort. Stay ahead of the curve in content management and elevate your WordPress website with AutomationTools.AI—the ultimate choice for efficient, dynamic, and hassle-free auto blogging. Learn More
