AWS Chief Sees Trillion-Dollar Cloud Business as Amazon Plans $220 Billion Spend
Investors reacted coolly, with Amazon shares falling about 6 percent after hours as the company leans into heavy AI infrastructure investment.
Amazon chief executive Andy Jassy told analysts on the latest quarterly earnings call that he sees AWS growing into a trillion-dollar revenue business within five to ten years. AWS revenue rose 39 percent year on year, and Jassy projected growth above 40 percent in both 2027 and 2028, backed by a 2026 capital spending plan of roughly $220 billion, most of it for AWS. He framed the heavy outlay as a once-in-a-lifetime bet on AI demand and said Amazon can fund it. Investors were unconvinced, with shares falling about 6 percent in after-hours trading. The spending pattern is shared by other cloud providers, Microsoft among them, which are also posting strong cloud results.
Why it matters
The news shows how far the largest cloud providers are willing to commit capital to AI demand before investors see returns. For customers and rivals, Amazon's plan signals that AWS expects sustained growth above 40 percent through 2028, a rate that would keep it central to the market. Shareholders, however, are wary of the cost, so the outcome depends on whether AI demand keeps pace with spending that Amazon describes as a once-in-a-lifetime bet.
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