Amazon CEO Andy Jassy reiterated the AWS trillion-dollar revenue goal on Thursday’s third-quarter earnings call. He believes Amazon Web Services could reach $1 trillion in annual revenue within five to 10 years, but getting there will require substantial investment.
Jassy previously outlined that ambition during Amazon’s second-quarter earnings discussion, as Fortune reported in August. Strong cloud demand has since reinforced his expectations, although the company’s rising infrastructure costs remain a concern for investors.
AWS Trillion-Dollar Revenue Goal Requires Massive Investment
Amazon expects approximately $220 billion in cash capital expenditures during 2026, with most of that spending directed toward AWS. Jassy said the company plans to invest significantly more in 2027.
The spending follows an earlier increase in Amazon’s capital expenditure forecast from $200 billion to $220 billion. That adjustment accompanied strong second-quarter cloud results and accelerating demand for AI computing.
AWS revenue grew 39% year over year in the third quarter, reaching approximately $46 billion. The business now operates at an annualized revenue run rate of $184 billion.
Jassy expects AWS revenue growth to exceed 40% in both 2027 and 2028. He believes enterprise AI adoption and continued migration to cloud infrastructure will support that expansion.
Amazon is also securing infrastructure capacity through partnerships. Its recent agreement with Verizon, worth more than $2 billion, will support high-capacity connections between cloud computing facilities.
Amazon’s AI Spending Raises Investor Concerns
Despite strong AWS growth, analysts repeatedly questioned Amazon’s investment strategy during Thursday’s earnings call. Their concerns centered on capital requirements, future profitability and whether demand would justify the spending.
As Bloomberg reported, Amazon’s infrastructure spending continues to rise as the company expands capacity for AI services.
Jassy defended the investment, describing AI as a rare opportunity to transformAmazon’ss long-term revenue potential. He argued that delaying infrastructure expansion could limit the company’s ability to meet growing demand.
The spending pressure extends across the technology industry. Earlier this year, CNBC reported that combined capital expenditures by major technology companies could exceed $1 trillion in 2027.
However, Microsoft and Alphabet recently reported capital spending below analysts’ expectations. Microsoft reduced its annual spending forecast, while Alphabet maintained its previous guidance, according to CNBC’s October 29 report.
Amazon’s aggressive investment plans have also affected market sentiment. Shares fell approximately 6% in after-hours trading Thursday as investors weighed higher spending against the company’s long-term cloud growth expectations.
