Amazon CEO Andy Jassy: AWS Will Eventually Reach $1 Trillion in Annual Revenue

Amazon CEO Andy Jassy confidently declares: AWS will eventually reach $1 trillion in annual revenue

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On the quarterly earnings call on the 29th local time, he once again emphasized this goal: "Amazon is building a business unlike anything seen before. No company in history has ever reached $1 trillion in annual revenue."

To this end, Amazon will also need to significantly increase capital expenditure to build infrastructure sufficient to support AWS's rapid growth. "We still expect cash capital expenditure in 2026 to be roughly $220 billion (at the current exchange rate, approximately 1.47 trillion yuan), most of which will go to AWS. Spending in 2027 will increase significantly further, and we have a clear expectation of substantial returns on these investments."

Amazon's heavy investment in AI infrastructure this year has continued to unsettle investors. On the earnings call, Wall Street analysts repeatedly pressed Jassy on why such enormous sums needed to be spent, what basis there was for believing the business would continue to grow, and what level of future profit margin could be achieved.

Jassy responded that the money was worth spending because Amazon wanted to seize the historic opportunity presented by AI-driven surging global demand for cloud computing. AWS revenue in the quarter grew 39% year over year, maintaining growth momentum for the sixth consecutive quarter.

Jassy also expects AWS revenue growth to reach 40% in both 2027 and 2028. "AWS has an annualized revenue scale of $184 billion (at the current exchange rate, approximately 1.23 trillion yuan), but there is still enormous room for growth. We continue to innovate and keep launching new foundational cloud services and AI features, enterprises also want to run their core businesses and AI workloads on AWS, and with our continuous expansion of service capabilities every year, we believe AWS can achieve revenue growth of more than 40% in both 2027 and 2028, and become a business with $1 trillion in annual revenue in the next 5 to 10 years."

Jassy also pointed out that enterprise adoption of AI is "only just beginning" and that the company's strategy is working. Subsequently, in response to analysts' questions about AWS's massive investment, Jassy called the AI boom a "once-in-a-lifetime opportunity," arguing that it was necessary for Amazon to seize the opportunity and invest heavily, and that it was worth spending huge sums on it. "We will continue to invest and maintain our leading position. We have the ability to bear the funding needs of this plan, and I believe it will completely transform Amazon's scale and also completely transform our revenue level."