Amazon CEO Andy Jassy believes Amazon Web Services (AWS) has the potential to become a trillion-dollar revenue business within the next five to ten years. However, reaching that milestone will require significant investment in cloud infrastructure, data centers, and artificial intelligence capabilities.
Speaking during Amazon’s quarterly earnings call on Thursday, Jassy said the company is building a business on a scale that has rarely been seen before. He also highlighted the growing demand for cloud computing services as businesses increasingly adopt AI technologies.
While Amazon expects AWS to continue growing rapidly, the company is preparing for another major increase in infrastructure spending over the next two years.
Amazon Plans $220 Billion in Capital Spending in 2026
Amazon expects its total capital expenditure to reach approximately $220 billion in 2026, with the majority of that investment going toward AWS, according to Jassy.
The company also plans to increase its spending significantly in 2027 as it works to expand the infrastructure needed to support growing demand for cloud and AI services.
These investments will likely include additional data center capacity, servers, networking equipment, and specialized infrastructure required to run large-scale AI workloads.
Amazon’s spending plans have attracted considerable attention from investors, particularly because of the financial commitment required to support its AI ambitions.
During the earnings call, analysts questioned Jassy about the scale of the investment, future demand, and whether the expected growth would generate sufficient financial returns.
Jassy maintained that the spending is necessary to take advantage of the growing opportunities in the cloud and AI markets.
AWS Revenue Growth Strengthens Amazon’s Confidence
Despite concerns about infrastructure costs, AWS continues to report strong business growth.
According to Amazon, AWS revenue increased by 39% compared with the same quarter last year. The cloud division has now delivered six consecutive quarters of accelerating growth.
Jassy also revealed that AWS has reached an annualized revenue run rate of approximately $184 billion.
The CEO believes the business can maintain growth of more than 40% in both 2027 and 2028, supported by increasing demand from enterprises and the expansion of AI-related services.
Amazon expects businesses to continue moving their core workloads and AI applications to AWS as they look for the computing power and infrastructure needed to develop and operate AI systems.
AI Adoption Could Create a Major Opportunity for AWS
Artificial intelligence is becoming one of the biggest drivers of demand for cloud computing.
Developing and operating AI applications requires substantial computing resources, including powerful processors, high-performance networking, storage, and large data center facilities.
This creates new business opportunities for cloud providers such as AWS, Microsoft Azure, and Google Cloud.
Jassy believes enterprise AI adoption is still at an early stage. As more companies integrate AI into their operations, demand for cloud infrastructure could increase further.
He described the current AI expansion as a once-in-a-lifetime opportunity and said Amazon intends to invest heavily to maintain its position in the market.
According to Jassy, the company’s current investment strategy is already showing positive results through AWS’s revenue growth.
Investors Remain Concerned About Amazon’s AI Spending
Although AWS is growing rapidly, Amazon’s infrastructure investment plans have raised questions among investors.
Spending approximately $220 billion in 2026 and increasing that amount further in 2027 represents a significant financial commitment.
Investors want to understand how quickly these investments will generate returns and whether AWS can maintain its growth while protecting profit margins.
Following the earnings call, Amazon shares declined by approximately 6% in after-hours trading on Thursday.
The market reaction highlights the difference between expectations for long-term AI growth and concerns about the costs involved in building the infrastructure needed to support it.
Microsoft and Other Cloud Companies Are Also Increasing AI Investments
Amazon is not the only technology company investing heavily in AI infrastructure.
Microsoft and Google are also expanding their data center networks and increasing capital expenditure to meet growing demand for AI and cloud services.
Microsoft has continued to report strong revenue growth, with its cloud business playing an important role in its financial performance.
The competition among major cloud providers is becoming increasingly focused on infrastructure capacity, AI computing power, and enterprise services.
Companies that can provide reliable and scalable infrastructure will be positioned to serve businesses developing and deploying increasingly complex AI applications.
What Comes Next for AWS?
Amazon’s long-term target is to transform AWS into a business generating $1 trillion in annual revenue within the next five to ten years.
To support this ambition, the company plans to continue expanding its infrastructure and investing in new cloud and AI capabilities.
Jassy expects AWS to grow by more than 40% in both 2027 and 2028, although achieving that target will depend on continued demand and the company’s ability to expand capacity.
The coming years will be important in determining whether Amazon’s large infrastructure investments translate into the expected financial returns.
Conclusion
Amazon is making a major bet on the future of cloud computing and artificial intelligence. Andy Jassy’s trillion-dollar AWS ambition reflects the company’s expectations for long-term enterprise AI adoption.
However, the road to that milestone will require substantial spending on infrastructure before the full financial benefits become clear.
With AWS already operating at an annualized revenue run rate of approximately $184 billion, Amazon is positioning its cloud business for another phase of expansion. The key question is how effectively the company can convert its growing AI demand and infrastructure investments into sustainable revenue and profits.