Amazon Chief Executive Andy Jassy says Amazon Web Services can become a trillion-dollar revenue business. He repeated that ambition on Thursday during the company’s quarterly earnings call, but he also made clear that the path there will be expensive.
“What we’re building at Amazon is unlike anything that’s ever been seen before,” Jassy said. “There has never been a business with a trillion dollars of annual revenue.”
How much is Amazon spending on infrastructure in 2026?
Getting there will require heavy spending on infrastructure. Jassy said Amazon still expects about $220 billion in cash capital expenditures in 2026, the majority of it for AWS, and that the company expects to spend meaningfully more in 2027. He tied that spending to a clear expectation of financial returns.
Why are investors uneasy about AI infrastructure spending?
Investors have grown uneasy about the AI infrastructure buildout this year. On Thursday, Wall Street analysts repeatedly pressed Jassy to explain the spending, what signals would show that growth is coming, and what profit margins to expect.
Jassy argued that the money is well spent. He said Amazon intends to capitalize on what he described as a historic moment in global cloud demand driven by artificial intelligence. AWS revenue grew 39% from the year-ago quarter, marking the sixth straight quarter of steady growth.
Can AWS reach $1 trillion in revenue?
Jassy also forecast that AWS will keep growing fast. “AWS is a $184 billion annualized revenue run-rate business, and yet the opportunity remains extraordinary,” he said. “We believe that AWS can grow north of 40% in each 2027 and in 2028, and be a trillion-dollar revenue business in the next five to 10 years.”
He said the company is “in the very early days” of enterprise AI adoption and that, so far, the “strategy is working.” When asked why the investment needed to be so large, Jassy described the AI boom as a “once-in-a-lifetime opportunity” that justified a big financial commitment now.
“We’re going to invest to continue being the leader,” he said. “We can fund this plan, and I think it will forever change the size of Amazon. It will forever change our revenue.”
Investors were not persuaded by the outlook, at least not right away. Amazon shares were down about 6% in after-hours trading Thursday.
The spending concern is not unique to Amazon. AI services run on cloud infrastructure, and other cloud providers are also spending heavily while posting strong gains. Microsoft, for instance, recently reported another record-breaking revenue quarter, driven largely by its cloud business, and it has also spent a great deal on its own buildout.
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