Amazon CEO Andy Jassy said he expects artificial intelligence to double the long-term sales potential of Amazon Web Services, projecting the cloud unit could reach about $600 billion in annual revenue within a decade. The new estimate, shared during an internal all-hands meeting and reported by Reuters, marks a sharp increase from Jassy’s previous forecast of $300 billion.
“I’ve been thinking for the last number of years that AWS, call it 10 years from now, could be about a $300 billion annual revenue run rate business,” Jassy said. “I think what’s happening in AI — that AWS has a chance to be at least double that.”
AWS posted $128.7 billion in revenue for fiscal 2025, rising 20% year over year. Achieving $600 billion by around 2036 would require nearly fivefold growth, translating to an average annual rate of about 17%. Amazon shares rose by roughly 1% following the report.
The upgraded outlook follows Amazon’s disclosure that it plans to spend about $200 billion in capital expenditures next year, primarily on AWS and AI infrastructure. That figure is nearly 50% higher than the $131.8 billion spent in 2025 and surpassed Wall Street expectations by $50 billion. “We are monetizing capacity as quickly as we can install it,” Jassy said in February, calling AI “a very unusual opportunity.”
Amazon’s AI spending aligns with a broader surge across the tech sector. Alphabet and Meta have signaled combined infrastructure investments exceeding $300 billion in 2026, bringing total Big Tech AI spending to around $600 billion. AWS’s backlog has climbed 40% year over year to $244 billion, reflecting sustained enterprise demand. “This isn’t some sort of quixotic top-line grab,” Jassy told analysts. “We have confidence that these investments will yield strong returns on invested capital.”
