AWS will be a $1T business, Jassy says. But first, it will spend big.
Andy Jassy reiterated AWS will become a trillion-dollar business but requires massive capital spending on infrastructure first.Summary
During Amazon's quarterly earnings call, CEO Andy Jassy reiterated his belief that AWS can become a trillion-dollar annual revenue business within the next five to 10 years. However, to support this growth, Amazon expects approximately $220 billion in cash capital expenditures for 2026, mostly for AWS, and plans to spend even more in 2027. Jassy projected AWS revenue growth of north of 40% in both 2027 and 2028, citing AI-driven cloud demand as a "once in a lifetime opportunity." AWS's current annualized revenue run-rate is $184 billion, and it grew 39% year-over-year. Despite the optimistic outlook, investors remain concerned about the high spending, with shares dropping about 6% in after-market trading. Jassy emphasized that the investment is essential to maintain leadership in the cloud market and will fundamentally change Amazon's size and revenue.
(Source：TechCrunch)