Amazon CEO: AWS could hit $1 trillion in yearly revenue

Amazon CEO Andy Jassy said at the quarterly earnings call that AWS, the company's cloud business, could reach $1 trillion in annual revenue within 5 to 10 years, a size no company has ever achieved.

To support this growth, Amazon plans to spend about $220 billion on capital projects in 2026, mostly on AWS infrastructure, with even more spending in 2027. AWS revenue grew 39% year over year this quarter, marking the sixth straight quarter of growth, with annualized revenue at $184 billion.

The massive AI infrastructure spending has made investors nervous, and Wall Street analysts kept asking why so much money is needed and what the profits will look like. Jassy said the AI-driven surge in cloud demand is a once-in-a-lifetime chance, that companies are just beginning to adopt AI, and the investment will transform Amazon's scale and revenue.