Jassy: AWS Can Hit $1 Trillion, but Spending Comes First

Andy Jassy says AWS can become a trillion-dollar revenue business, and he repeated that goal on Amazon's quarterly earnings call Thursday. "There has never been a business with a trillion dollars of annual revenue," he said.

Getting there won't be cheap. Jassy said Amazon still expects 2026 cash capex of roughly $220 billion, mostly for AWS, with meaningfully more spending in 2027.

That outlay has worried investors, and analysts pressed Jassy on the call to justify it and explain where the growth and margins will come from. He argued the money is well spent, pointing to a historic moment in cloud demand driven by AI. AWS revenue rose 39 percent year over year, its sixth straight quarter of steady growth, and Jassy forecast growth above 40 percent in both 2027 and 2028.

He described AWS as a $184 billion annualized revenue run-rate business and said it could reach trillion-dollar revenue in the next five to 10 years. Jassy called the AI boom a "once in a lifetime opportunity" and said Amazon will invest to stay the leader. Shares fell about 6 percent in after-market trading Thursday.

Source: TechCrunch