AWS eyes $1 trillion annual revenue as AI demand rises; installs accelerator every 14 seconds

AWS targets a trillion-dollar scale

Jassy said AWS could become a $1 trillion business in five to ten years. He also forecast growth of 40 percent or more in either 2027 or 2028, citing the AI boom.

He pointed to a long-term shift from company-owned systems to cloud services. About 85 percent of global IT spending remains on premises, he said, and the transition to cloud could unfold over 10 to 20 years.

Jassy added that workloads once considered unlikely to leave on-premises systems, including mainframes and storage area networks, are now moving to the cloud. AWS core compute and storage revenue, he said, grew at its fastest pace in several years.

AI drives broader cloud demand

Jassy said AI workloads also require conventional cloud computing resources. These include capacity for reinforcement learning, post-training and tool use, which he said can increase demand for AWS services more broadly.

Amazon expects capital expenditure to reach $220 billion in 2026. It spent $75.9 billion in the most recent quarter, with most of that amount going to AWS, according to the company.

Jassy said AWS is finding ways to recover the cost of infrastructure investments more quickly. He described AI as the largest transformation of his lifetime, while noting that the opportunity is arriving on a compressed timetable.

AWS outpaces other businesses

Amazon’s retail and operations divisions grew revenue by 6 percent, at slimmer margins than AWS. Jassy’s comments highlight the cloud unit’s importance to Amazon’s overall growth. If those growth patterns persist, the company’s business mix could shift further toward cloud services. The article presents that possibility as a future scenario rather than a certainty.