Andy Jassy, Amazon’s CEO, has reiterated his firm belief that Amazon Web Services (AWS) has the potential to become a trillion-dollar revenue enterprise. During the company’s recent quarterly earnings call, he reiterated this bold vision.
“What we are building at Amazon is unlike anything that has ever been seen before. There has never been a business with a trillion dollars of annual revenue,” Jassy stated during the discussion.
To achieve this milestone, Amazon plans to significantly increase its capital expenditures to construct the necessary infrastructure. Jassy revealed that the company expects to spend approximately $220 billion in cash capex in 2026, with the majority of that directed toward AWS. Additionally, spending is anticipated to rise meaningfully in 2027, though Jassy emphasized a clear path to financial returns.
Amazon’s aggressive spending on AI infrastructure has been a source of anxiety for investors throughout the year. During the earnings call, Wall Street analysts repeatedly pressed Jassy to justify these costs, asking about the signals for growth and expected profit margins.
Jassy defended the expenditures as essential investments to capitalize on a historic moment in global cloud demand driven by artificial intelligence. He pointed out that AWS revenue has grown by 39% compared to the previous year, marking the sixth consecutive quarter of steady growth.
The CEO projected that AWS will not only grow by 40% next year but also in 2028. “AWS is an $184 billion annualized revenue run-rate business, and yet the opportunity remains extraordinary,” Jassy enthused. He added, “With our continued pace of innovation... we believe that AWS can grow north of 40 percent in each 2027 and in 2028, and be a trillion-dollar revenue business in the next five to 10 years.”
Jassy characterized the current moment as “the very early days” of enterprise AI adoption, noting that the strategy is already working. When asked why the investment required is so substantial, he framed the AI boom as a “once in a lifetime opportunity” that justifies the financial commitment. “We’re going to invest to continue being the leader,” he concluded. “It will forever change our revenue.”
Despite the optimistic outlook, investor sentiment remains cautious, as shares dropped about 6% following the earnings call. The broader cloud industry faces a similar dynamic, where providers like Microsoft are investing heavily to support the AI boom while simultaneously seeing record-breaking revenue growth.
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