Jassy predicts AWS could reach $1tn in annual revenue within a decade
Amazon Web Services is growing rapidly as demand for cloud computing and AI lifts its revenue, leading chief executive Andy Jassy to predict it could become a $1 trillion-a-year business within five to ten years. He said AWS may grow by 40 per cent or more in 2027 or 2028, as companies move workloads from their own data centres to the cloud.
AWS is forecast to generate $184 billion in revenue this financial year, after third-quarter revenue rose 39.3 per cent to nearly $46 billion. Jassy said AWS installs an AI accelerator about every 14 seconds, while customers take up new capacity almost as quickly; Amazon plans $220 billion in capital spending in 2026. The rest of Amazon grew more slowly, with retail and operations revenue up 6 per cent, while total company revenue reached $180.17 billion for the quarter.
In short
- AWS revenue is growing quickly, fuelled by cloud and AI demand.
- Jassy sees a path to $1 trillion in annual AWS revenue.
- Amazon plans $220 billion in capital spending in 2026.
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The strongest fair case each way — we don't pick a winner.
The case for
Jassy’s forecast reflects the scale of demand for cloud and AI computing, alongside the continued shift from companies’ own data centres to AWS. If that growth continues, investment in new capacity could help AWS serve customers quickly and expand into a business with substantial long-term revenue.
The case against
A $1 trillion annual revenue target within five to ten years is highly uncertain: it depends on sustained rapid growth, continued customer adoption and AWS converting heavy capital spending into lasting demand. AI enthusiasm and current growth rates may not persist, while slower growth elsewhere at Amazon underscores the risk of relying on ambitious projections about one business.
Explained simply
Amazon Web Services, or AWS, is Amazon’s cloud computing business. It rents computing power, data storage and software tools to companies, which can use them over the internet instead of running all those systems in their own data centres.
AWS is a major part of Amazon’s business, alongside its online shops and delivery operations. Its customers include companies that need computing capacity for everyday services and newer uses such as artificial intelligence; Amazon invests in data centres and specialised chips to provide that capacity.
The business matters because companies’ shift to cloud services and AI could create demand for more computing power. AWS’s growth can therefore affect Amazon’s overall performance and shape competition among large technology companies that sell cloud services.
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Originally published by The Register as “AWS installs an AI accelerator every 14 seconds and eyes $1 trillion annual revenue”.