Key Takeaways
- CEO Andy Jassy revealed AWS could achieve $600 billion in yearly revenue over the next ten years — twice his earlier $300 billion projection.
- Artificial intelligence momentum drives the updated forecast, with Jassy attributing the increase to rapid AI adoption.
- AWS posted 20% growth in 2025, reaching $128.7 billion, yet the $600B goal by 2036 needs only ~14% yearly growth — a slower trajectory.
- With $200 billion in capital expenditure planned for this year, Amazon leads U.S. tech companies in AI infrastructure investment.
- AMZN shares gained approximately 1% following the announcement before retreating.
During a private all-hands gathering with staff members, Amazon CEO Andy Jassy disclosed that AWS revenue could climb to $600 billion annually within approximately ten years, according to a Reuters report. This projection represents a twofold increase from Jassy’s earlier $300 billion estimate.
Jassy pointed to artificial intelligence advancements as the catalyst for revising the target upward. He explained that AWS now has the potential to achieve “at least double” his prior forecast due to accelerating AI integration across cloud computing platforms.
Amazon’s total net sales hhttps://coincentral.com/microsoft-msft-eyes-legal-action-over-amazon-openais-50-billion-cloud-deal/it $716.9 billion in 2025, up 12% year-over-year. AWS contributed $128.7 billion of that, growing 20% in the year.
The $600 billion milestone would mean AWS revenue expanding roughly fivefold from current levels. However, achieving this by 2036 demands annual growth of approximately 14% — paradoxically slower than the division’s 2025 performance.
Investors appeared underwhelmed by the arithmetic. AMZN stock climbed about 1% after the news broke but surrendered most gains shortly after. Year-to-date, shares have declined 6.8%.
The Capital Spending Dilemma
Amazon outpaces every other major American technology firm in AI infrastructure expenditure. The company’s capital spending blueprint for this year totals $200 billion — a staggering amount prompting investor scrutiny over potential returns.
Jassy has stood behind the aggressive spending strategy, explaining to employees that substantial upfront capital is necessary to acquire land, secure power resources, and purchase hardware. His argument centers on front-loading investments to realize benefits down the road.
Yet energy expenses continue climbing, with no clear indication that capital expenditure has reached its peak. Amazon has additionally committed to helping offset household energy cost increases, expanding its financial commitments.
Strategic AI Collaborations and Silicon Investments
On the technical front, Amazon has been expanding its artificial intelligence ecosystem. AWS recently formed a partnership with chip startup Cerebras Systems focused on enhancing AI inference performance speeds within cloud environments.
Amazon has also entered into a collaboration with Nvidia on AI assistants for cars.
Perhaps the company’s most significant wager involves a multi-year strategic alliance with OpenAI, encompassing potential investment up to $50 billion. Under this arrangement, OpenAI has committed to deploying Amazon’s proprietary Trainium AI chips extensively.
Simultaneously, Amazon continues developing its own semiconductor solutions, betting that internally designed processors will reduce the expense of delivering AI capabilities to customers over time.
Currently, AWS produced $128.7 billion in revenue during 2025, with analyst forecasts projecting growth to $161.2 billion this year.
