Amazon CEO Andy Jassy announced that AWS is projected to become a trillion-dollar revenue business within the next five to ten years, driven by surging artificial intelligence demand. During Thursday's quarterly earnings call, Jassy stated that the cloud division operates at a $184 billion annualized revenue run-rate and could grow north of 40 percent in both 2027 and 2028.
To support this massive expansion, Amazon plans to ramp up its capital expenditures significantly, anticipating a cash capex of approximately $220 billion in 2026—primarily for AWS—and even higher spending in 2027. While investors expressed concern over the heavy spending and pushed shares down about 6 percent in after-market trading, Jassy defended the investments as a once-in-a-lifetime opportunity to capitalize on enterprise AI adoption.
AWS revenue already increased 39 percent from the year-ago quarter, marking the sixth straight quarter of steady growth for the division. Jassy emphasized that the company is in the early days of enterprise AI adoption and that the heavy infrastructure investments will forever change Amazon's overall scale and revenue.
This ambitious financial strategy highlights the intense capital race among major cloud providers to capture the expanding global market for artificial intelligence workloads.