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AWS will be a $1T business, Jassy says

Amazon CEO Andy Jassy predicts that Amazon Web Services will become a one trillion dollar annual revenue business within the next decade, driven by strong artificial intelligence demand. AWS grew 39 percent in the third quarter of fiscal 2026 to reach 45.9 billion dollars, while the cloud backlog expanded to 578 billion dollars. Despite this growth, Jassy warned that Amazon must first execute a massive capital expenditure spending spree, with AI spending slated to go meaningfully higher in 2027 to build out necessary infrastructure. Amazon cloud capacity is largely sold out through 2027.

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  • ✓ Andy Jassy predicts that AWS will become a one trillion dollar business within the next decade.
  • ✓ AWS grew 39 percent in the third quarter of fiscal 2026 to 45.9 billion dollars.
  • ✓ Amazon cloud capacity is largely sold out through 2027, according to CEO Andy Jassy.
  • ✓ The AWS backlog reached 578 billion dollars.
🛡️ Source Corroboration: 21 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

Amazon reported third-quarter fiscal 2026 results showing 39 percent AWS growth alongside leadership projections for trillion-dollar scale and significantly higher spending.

Live updates

  1. AWS Seen as $1T Business by Jassy, but Big Spending Ahead

    Amazon CEO Andy Jassy predicts that Amazon Web Services will become a one trillion dollar annual revenue business within the next decade, driven by strong artificial intelligence demand. AWS grew 39 percent in the third quarter of fiscal 2026 to reach 45.9 billion dollars, while the cloud backlog expanded to 578 billion dollars. Despite this growth, Jassy warned that Amazon must first execute a massive capital expenditure spending spree, with AI spending slated to go meaningfully higher in 2027 to build out necessary infrastructure. Amazon cloud capacity is largely sold out through 2027.

    Why it matters

    The aggressive capital expenditure plans have concerned some investors who worry about near-term returns on the massive outlays required for artificial intelligence data centers. Tech shares previously experienced a sharp selloff as markets weighed the heavy spending commitments across major cloud providers. However, proponents point to soaring order backlogs and accelerated cloud growth as evidence of a transformative market opportunity.

    What is confirmed

    • Andy Jassy predicts that AWS will become a one trillion dollar business within the next decade.
    • AWS grew 39 percent in the third quarter of fiscal 2026 to 45.9 billion dollars.
    • Amazon cloud capacity is largely sold out through 2027, according to CEO Andy Jassy.
    • The AWS backlog reached 578 billion dollars.

    Still unconfirmed

    • Amazon must spend about 220 billion dollars in 2026 capex to build out AI infrastructure.

    What to watch next

    • Actual capital expenditure totals reported by Amazon for fiscal 2026 and 2027
    • Sustained quarterly growth rates for AWS cloud services
    • Investor response to rising artificial intelligence infrastructure costs
    Sources used for this update (23)
    1. finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
    2. www.cnbc.com — Oil today: Iran, US, crude, wti, brent, trump
    3. TechCrunch — AWS will be a $1T business, Jassy says — but first, it will spend big
    4. Business Insider — Amazon CEO sees AI spending 'meaningfully' higher in 2027
    5. The Seattle Times — Amazon CEO predicts company’s revenue will hit $2 trillion in next decade
    6. GeekWire — Andy Jassy’s prediction: Amazon could have two $1 trillion businesses within a decade
    7. Seeking Alpha — Amazon sees AWS becoming a $1T business amid 'once-in-a-lifetime' AI opportunity (AMZN:NASDAQ)
    8. Yahoo Finance — Amazon CEO Andy Jassy Just Made a Wild Prediction. It Could Make the Tech Giant a Big Winner.
    9. Reuters — Amazon cloud capacity largely sold out through 2027, CEO Jassy says
    10. Bloomberg.com — Amazon’s Jassy Has a Trillion-Dollar AWS in His Sights
    11. CoStar — News | Amazon boosts AI spending as cloud growth accelerates, concerning investors
    12. Yahoo Finance — Amazon Web Services Set for Strong Performance Ahead Despite 'Disappointing' Third-Quarter Growth, Morgan Stanley Says
    confidence 90%
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