Amazon CEO Projects AWS Revenue Could Hit $600 Billion by 2036
Amazon CEO Andy Jassy told employees during an internal meeting Tuesday that artificial intelligence could help cloud computing unit AWS reach $600 billion in annual sales-double his previous estimate of $300 billion.
"I think what's happening in AI that AWS has a chance to be at least double that," Jassy said, according to comments reviewed by Reuters during the all-hands meeting in San Francisco.
The projection implies roughly 17% annual growth over the next decade. AWS generated $128.7 billion in revenue in 2025, a 19% increase from the prior year.
Capital Spending Tied to Demand Signals
Jassy addressed investor concerns about Amazon's $200 billion capital expenditure commitment this year, mostly for AI infrastructure development. Wall Street's reaction to the spending announcement sent shares down before they recovered to close up 1.75%.
The CEO said the company has "very clear and significant demand signals" and is not spending the money on speculation. "We're not just spending the $200 billion of capex because we're hoping AI is going to be big," he said.
He explained the timing lag between infrastructure investment and revenue generation. AWS must spend capital years in advance to secure land, power, buildings, chips, servers, and networking equipment before monetizing those assets.
Faster growth in AWS means higher near-term capital requirements, Jassy added. The company cannot match spending to immediate revenue.
Other Business Updates
Amazon expects to complete its one millionth drone delivery this year. The program, which delivers items fitting in a shoebox within 30 minutes, has been in development since its 2013 announcement.
The company also disclosed that its shuttered Fresh and Go physical store formats represented less than 1% of overall grocery sales. Amazon closed those store formats in January.
For finance professionals evaluating long-term cloud infrastructure investments, understanding AWS's growth trajectory matters. AI for Finance resources can help contextualize how artificial intelligence drives capital allocation decisions. CFOs specifically may benefit from AI Learning Path for CFOs to evaluate the financial implications of large-scale AI infrastructure commitments.
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