AWS will be a $1T business, Jassy says. But first, it will spend big.
techcrunch ·
Amazon CEO Andy Jassy stated that AWS is on track to become a trillion-dollar revenue business within the next five to ten years. To achieve this goal, Amazon plans to significantly increase its capital expenditures, with approximately $220 billion expected for 2026 and even higher spending anticipated in 2027. Jassy justified these substantial investments by describing the current AI-driven cloud demand as a historic, once-in-a-lifetime opportunity. He highlighted that AWS revenue has grown by 39 percent year-over-year and forecasted continued growth rates above 40 percent through 2028. Despite these optimistic projections and strong quarterly performance, investors expressed concern over the heavy upfront costs, causing Amazon's shares to drop about 6% after market hours. The CEO emphasized that this aggressive infrastructure buildout is essential to maintain AWS's leadership position in the enterprise AI sector. While competitors like Microsoft are also investing heavily, Jassy remains confident that the strategy will permanently transform Amazon's revenue scale.
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