Amazon CEO Andy Jassy reiterated on the company’s quarterly earnings call on Thursday that he believes Amazon Web Services (AWS) has the potential to reach $1 trillion in annual revenue. He argued that what Amazon is building is unprecedented and that no business has ever achieved a trillion dollars in annual revenue.
Large capital expenditures planned
Achieving that scale will require substantial investments in infrastructure. Jassy disclosed that Amazon expects approximately $220 billion in cash capital expenditures in 2026, with the majority allocated to AWS, and that the company plans to spend meaningfully more in 2027. He said Amazon has a clear line of sight to attract the financial returns from those investments.
Growth, forecasts and the role of AI
AWS revenue grew 39 percent year over year in the most recent quarter, marking six consecutive quarters of steady growth. Jassy stated that AWS currently runs at about a $184 billion annualized revenue run rate, but that the opportunity is much larger.
On the call he forecast that AWS could grow north of 40 percent in both 2027 and 2028, and reiterated the target that AWS could become a trillion‑dollar revenue business within the next five to ten years. He also said enterprises are still in the very early days of AI adoption and that, so far, the company’s strategy is working.
Investor concerns and market reaction
Amazon’s heavy spending on AI infrastructure has been a recurring worry for investors this year. During the earnings call Wall Street analysts repeatedly pressed Jassy for explanations of the spending, the signals supporting future growth, and the expected profit margins.
Following the announcements, Amazon shares traded down about 6 percent in after‑hours trading on Thursday.
Industry context: other cloud providers also investing
The AI boom has been a mixed blessing for the cloud industry because the AI services driving demand rely on cloud infrastructure. Other major cloud providers, such as Microsoft, have also invested heavily while reporting record revenue growth in their cloud businesses. Large-scale spending alongside strong revenue gains has become an industry-wide trend.
Jassy’s closing point
Jassy characterized the AI surge as a "once in a lifetime opportunity" that justifies the substantial near‑term financial commitment. "We’re going to invest to continue being the leader," he said, adding that Amazon can fund the plan and that it will fundamentally change the company’s size and revenue over time.
