Amazon CEO Andy Jassy said on Thursday that Amazon Web Services can become a trillion-dollar revenue business. He made the comments during the company’s quarterly earnings call on October 29.
AWS is Amazon’s cloud computing unit. It sells computing power, storage, and AI tools to businesses around the world.
Jassy has shared this goal publicly before. On Thursday, he repeated it and gave investors a timeline.
“What we’re building at Amazon is unlike anything that’s ever been seen before. There has never been a business with a trillion dollars of annual revenue,” he said.
AWS Growth Targets
AWS revenue rose 39% compared with the same quarter last year. Bloomberg reported this continues a trend of steady growth for the sixth straight quarter.
Jassy said the cloud unit now has an annualized revenue run rate of $184 billion. He said the opportunity is still “extraordinary.”
The CEO forecast that AWS can grow more than 40% in both 2027 and 2028. He said it could reach $1 trillion in annual revenue within the next five to 10 years.
He pointed to new core and AI features, strong enterprise demand, and the capacity Amazon adds each year. He also said businesses are “in the very early days” of adopting AI.
“The strategy is working,” Jassy said.
Spending Set to Climb
Reaching that goal will cost a lot of money. Amazon still expects cash capital expenditures of about $220 billion in 2026, with most of it going to AWS.
Jassy said the company expects to spend “meaningfully more in 2027.” He added that Amazon has a clear line of sight to financial returns on that spending.
Amazon’s heavy spending on AI infrastructure has worried investors throughout this year. On Thursday’s call, Wall Street analysts asked Jassy several times to explain the costs, the signs of future growth, and expected profit margins.
Jassy said Amazon plans to take advantage of a historic moment in global cloud demand driven by AI. He called the AI boom a “once-in-a-lifetime opportunity” that is worth a large 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.”
Amazon is not the only cloud provider spending heavily. AI services run on cloud infrastructure, so providers are spending more while also earning more.
Microsoft just reported another quarter of record-breaking revenue growth, driven largely by its cloud business. The company has also spent large sums on AI infrastructure.
Investors did not appear convinced by Jassy’s comments. Amazon shares fell about 6% in after-hours trading on Thursday following the earnings call.
