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Amazon CEO: AWS Could Become a $1 Trillion Business, but First Comes About $220 Billion in Spending This Year
According to TechCrunch, Amazon CEO Andy Jassy said on the earnings call that AWS, Amazon's cloud business, could reach $1 trillion in annual revenue within five to ten years. Heavy AI infrastructure investment comes first: cash capital expenditures this year are expected at about $220 billion, and investors are concerned about the spending.
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What happened
TechCrunch reports that on Amazon's quarterly earnings call on Thursday, Andy Jassy reiterated his belief that AWS can become a business with $1 trillion in annual revenue. AWS is Amazon's cloud business, providing computing and other cloud services to companies. As quoted by TechCrunch, he said: "There has never been a business with a trillion dollars of annual revenue."
As quoted by TechCrunch, Jassy said AWS is currently a business with a $184 billion annualized revenue run-rate. A run-rate projects a full year of revenue from the current pace. He said he believes AWS can grow more than 40% each year in 2027 and 2028 and become a $1 trillion annual-revenue business within the next five to ten years.
Key numbers at a glance
| Item | What TechCrunch reported |
|---|---|
| 2026 cash capex | Jassy said about $220 billion, mostly for AWS |
| 2027 capex | Jassy said Amazon expects to spend "meaningfully more" |
| AWS revenue growth | Up 39% year over year, the sixth consecutive quarter of steady growth |
| Annualized revenue (run-rate) | $184 billion (as stated by Jassy) |
| Growth expectation | Jassy believes growth of more than 40% each year in 2027 and 2028 |
| $1 trillion revenue goal | Jassy said it can be reached within five to ten years |
Spending big first: investor concerns
Capital expenditures are investments companies make in long-term assets such as infrastructure. TechCrunch reports that for AWS to reach this goal, Amazon must first increase capex to build the infrastructure the business needs. Amazon's large AI infrastructure spending has been an ongoing source of concern for investors this year. On the call, Wall Street analysts repeatedly asked Jassy to explain the spending, the signs that growth will indeed arrive, and the expected profit margins.
According to TechCrunch, Jassy responded that the money is well spent because Amazon plans to capitalize on a historic moment in global cloud demand driven by AI. He said the company was "in the very early days" of AI adoption by businesses and that, so far, the "strategy is working." He also called the AI boom a "once in a lifetime opportunity." He said: "We're going to invest to continue being the leader. We can fund this plan."
What it means for everyday readers
Many AI services people use every day rely on cloud providers' data and computing infrastructure. TechCrunch calls the AI boom a "mixed blessing" for the cloud industry, because the AI services driving the boom are built on cloud infrastructure.
TechCrunch also says that, like Amazon, other cloud providers are spending big but also earning big. For example, Microsoft just posted another round of record-breaking revenue growth, driven largely by its cloud business.
Frequently asked questions
When does Jassy say AWS will reach $1 trillion in revenue?
As quoted by TechCrunch, Jassy said AWS could become a business with $1 trillion in annual revenue within the next five to ten years. This is his forecast, not a result that has already happened.
How much is Amazon spending on capex this year?
TechCrunch quotes Jassy as saying Amazon expects 2026 cash capex of about $220 billion, mostly for AWS. He also said Amazon expects to spend "meaningfully more" in 2027.
How has AWS been growing recently?
TechCrunch reports AWS revenue grew 39% year over year, the sixth consecutive quarter of steady growth. Jassy also said AWS's annualized revenue run-rate is $184 billion.
Why are analysts questioning the spending?
TechCrunch reports that heavy AI infrastructure spending has worried investors this year. On the call, analysts repeatedly asked Jassy to explain the spending, the signs of growth and the expected profit margins.
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