AWS will be a $1T business, Jassy says — but first, it will spend big
Amazon's massive $220 billion capital expenditure plan highlights the unprecedented scale of AI infrastructure investment by cloud hyperscalers and the ongoing tension with Wall Street over short-term costs versus long-term AI returns.
What happened
Amazon CEO Andy Jassy projected that AWS could reach $1 trillion in annual revenue within the next five to 10 years, driven by enterprise AI demand. To support this growth, Amazon expects to spend approximately $220 billion in cash capital expenditures in 2026, primarily for AWS infrastructure, with even higher spending planned for 2027. Despite AWS revenue growing 39% year-over-year to a $184 billion annualized run rate, Amazon shares fell about 6% in after-hours trading due to investor concerns over the massive spending.
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