AWS chief says cloud business will reach $1 trillion revenue

Summarised from 2 outlets · Updated 30 Oct, 06:50 · Archive

Amazon's AWS division will become a $1 trillion annual revenue business, CEO Andy Jassy says, but will require massive capital spending.

AWS chief Andy Jassy has reiterated his belief that Amazon's cloud division will become a $1 trillion annual revenue business during the company's earnings call on Thursday. However, he acknowledged that achieving this ambition requires substantial capital investment to build the infrastructure necessary to support growth driven by artificial intelligence demand.

Amazon expects approximately $220 billion in capital expenditure in 2026, with the majority allocated to AWS, and plans to spend significantly more in 2027. Jassy said there was 'a clear line of sight to attract its financial returns', defending the spending to Wall Street analysts who repeatedly questioned the scale of the investment during the call.

Jassy attributed the spending to what he described as 'a historic moment in global cloud demand driven by AI'. AWS currently operates at a $184 billion annualized revenue run-rate and grew 39 per cent year-on-year in the most recent quarter. Jassy forecast continued growth of 40 per cent in both 2027 and 2028.

How it is being reported

• AWS installs an AI accelerator every 14 seconds and eyes $1 trillion annual revenueBefore long, we could be writing about a cloud company with a retail side hustleThe Register · 30 Oct, 05:42
• AWS will be a $1T business, Jassy says. But first, it will spend big.Amazon wants to be the king of AI cloud computing and become the first $1 trillion revenue business. But to do that it will have to continue on its capex spending spree, its CEO said Thursday.TechCrunch · 29 Oct, 23:42

In this story: AWS · Amazon · Andy Jassy

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