TLDR
- CEO Andy Jassy revealed to Amazon employees that AWS revenue could reach $600 billion annually within approximately 10 years — twice his earlier projection of $300 billion.
- The upgraded forecast stems from artificial intelligence momentum, with Jassy attributing the revision to AI-driven opportunities.
- While AWS expanded 20% in the past year to $128.7 billion, achieving $600B by 2036 would only demand roughly 14% compound annual growth — a deceleration from current rates.
- The company leads all major U.S. technology firms in AI infrastructure investment, earmarking $200 billion for capital expenditures in the current year.
- AMZN shares initially climbed approximately 1% following the announcement before retracting most of those gains.
During a company-wide internal meeting, Amazon CEO Andy Jassy disclosed that AWS could generate $600 billion in annual revenue within the next decade or so, according to Reuters. This projection represents a doubling of his earlier $300 billion forecast.
Jassy pointed to advancements in artificial intelligence as the catalyst for his revised outlook. He indicated that AWS now has the potential to achieve “at least double” his prior estimate, thanks to rapidly accelerating AI integration across cloud computing platforms.
Amazon’s overall net sales reached $716.9 billion in 2025, representing a 12% year-over-year increase. AWS accounted for $128.7 billion of that total, posting 20% annual growth.
The ambitious $600 billion milestone would mean AWS revenue multiplying approximately fivefold from its current level. However, reaching that figure by 2036 would necessitate compound annual growth of only slightly above 14% — ironically slower than the division’s recent performance.
This mathematical reality failed to energize the market. AMZN shares climbed roughly 1% after the news broke but subsequently surrendered most of those advances. Year-to-date, the stock has declined 6.8%.
The Capex Question
Amazon currently outspends every other leading U.S. technology company on AI infrastructure development. The firm’s projected capital expenditure for this year totals $200 billion — a staggering amount that has prompted investors to scrutinize expected returns.
Jassy has justified the aggressive spending strategy, explaining to employees that substantial upfront investment is essential to secure land, electrical power, and computing hardware. His perspective emphasizes that today’s expenditures will translate into tomorrow’s rewards.
Yet energy expenses continue their upward trajectory, and there’s no definitive indication that capital spending has plateaued. Amazon has additionally committed to helping mitigate increasing household energy costs, expanding its financial responsibilities.
AI Partnerships and Chip Bets
On the technological front, Amazon has been expanding its artificial intelligence portfolio. AWS recently established a partnership with chip manufacturer Cerebras Systems focused on enhancing AI inference performance within cloud environments.
Amazon has also entered into a collaboration with Nvidia to develop AI-powered automotive assistants.
Perhaps its most significant commitment involves a multi-year strategic alliance with OpenAI, encompassing potential investment of up to $50 billion. Under this arrangement, OpenAI has committed to deploying Amazon’s proprietary Trainium AI chips extensively.
The company is simultaneously engineering its own custom processors, anticipating that internally developed chips will reduce the expense of delivering AI capabilities to customers over the long term.
Currently, AWS produced $128.7 billion in revenue during 2025, with industry analysts forecasting that number will climb to $161.2 billion this year.
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