Jassy says AWS could become a $1 trillion business as Amazon raises spending

Amazon CEO Andy Jassy said AWS could become a business with $1 trillion in annual revenue within five to 10 years, while the company plans to increase spending on infrastructure.

On Amazon’s quarterly earnings call Thursday, Jassy said the company expects 2026 cash capital expenditures of about $220 billion, with most going to AWS, and expects to spend “meaningfully more” in 2027. He said Amazon believes it can attract financial returns from that investment.

AWS revenue rose 39% from the year-earlier quarter, marking a sixth consecutive quarter of steady growth. Jassy forecast that AWS could grow more than 40% in both 2027 and 2028. He also described enterprise adoption of AI as being in its early days and said Amazon’s strategy was working.

Analysts on the call questioned the scale of the spending, growth prospects and expected profit margins. Jassy characterized AI as a “once in a lifetime opportunity” and said Amazon would invest to remain a leader. He said the plan could change the size of Amazon and its revenue.

Investors remained concerned: Amazon shares fell about 6% in after-market trading Thursday. Jassy also said AWS had an annualized revenue run rate of $184 billion.