Amazon CEO Andy Jassy doubles AWS sales projections to $600 billion by 2036 driven by AI boom

Exclusive: Amazon CEO sees AI doubling prior AWS sales projections to $600 billion by 2036

SAN FRANCISCO, March 17 (Reuters) - Amazon O> CEO Andy Jassy said during an internal all-hands meeting he expects artificial intelligence could help cloud computing unit Amazon Web Services achieve $600 billion in annual sales, double his own prior estimate. "I've been thinking for the last number of years that ⁠AWS, call it 10 years from now, could be about a $300 billion annual revenue, run rate business," Jassy said, according to a review of his comments by Reuters. "I think what's happening in AI that AWS has a chance to be at least double that." Amazon held one of its regular all hands ⁠meetings on Tuesday to provide employees updates on businesses ranging from drone deliveries to advertising sales to Amazon Fresh groceries. AWS in 2025 booked $128.7 billion in sales, ⁠up 19% from 2024. Jassy's projection suggests an average growth rate of nearly 17% every year for the next ⁠decade. He did not elaborate on how those sales might be distributed and Amazon did ⁠not immediately respond to a request for comment. Amazon shares were up about 1% to $213.87. Reporting by Greg Bensinger; Editing by Chizu Nomiyama and Chris Reese Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Greg Bensinger Thomson Reuters Greg Bensinger joined Reuters as a technology correspondent in 2022 focusing on the world's largest technology companies. He was previously a member of The New York Times editorial board and a technology beat reporter for The Washington Post and The Wall Street Journal. He also worked for Bloomberg News writing about the auto and telecommunications industries. He studied English literature at The University of Virginia and graduate journalism at Columbia University. Greg lives in San Francisco with his wife and two children.

Amazon CEO Andy Jassy forecasts cloud revenue to hit $600B by 2036, thanks to AI - SiliconANGLE

Amazon CEO Andy Jassy forecasts cloud revenue to hit $600B by 2036, thanks to AI Artificial intelligence is likely to help Amazon.com Inc.'s cloud computing business reach a whopping $600 billion in annual sales within the next decade, according to its Chief Executive Andy Jassy. The bold forecast came during an internal all-hands meeting with company employees on Tuesday. There, Jassy provided employees with a comprehensive update on the state of the company's businesses, including its drone deliveries, advertising sales and its nascent AI offerings. According to Reuters, Jassy said that prior to the AI boom, he had envisioned Amazon Web Services Inc. becoming a $300 billion annual revenue run rate business within the next 10 years. "[But] I think with what's happening in AI, AWS has a chance to be at least double that," he said. AWS still has a way to go, but the $600 billion number is not unrealistic. In fiscal 2025, AWS booked $128.7 million in revenue, up 19% from the year before. To reach Jassy's new target, the business would need to grow its sales at a rate of 17% annually for the next decade, so it seems doable. Jassy did not discuss how those sales might be distributed across the AWS unit. The cloud computing division has long been Amazon's most profitable business. Its high-margin, scalable cloud infrastructure contrasts considerably with the low-margin, high-logistics cost of its e-commerce business, and has allowed it to consistently contribute the bulk of Amazon's total operating profit. In fiscal 2025, it represented around 70% of the company's total operating income, despite only generating 17% of its total revenue. Jassy's comments may help to reassure jittery investors, who have become increasingly wary of the company's ambitious spending plans. Earlier this year, the company committed to investing $200 billion in capital expenditures in fiscal 2026, with most of that money earmarked for AI data centers. It's thought to be the main reason why Amazon's stock is down more than 6% in the year to date. During the meeting, Jassy took part in a question and answer session with employees, where one noted that the company's expenditures have "received a lot of attention." Jassy began his response by saying, "that's one way of putting it." Jassy went on to explain the logic behind Amazon's investments. He stressed that AI represents a "very unusual opportunity" to build an extremely large business, and that he has seen clear and significant demand signals for the services it's trying to build. "We're not just spending $200 billion of capex because we're hoping AI is going to be big," he insisted. The CEO added that the faster AWS's AI business grows, the more it has to spend in the short term on things like land for data centers, power supplies, building construction, and the chips, servers and networks needed to run AI. "We have to lay all that out a couple of years in advance of when we're ⁠going to monetize," he said. AI wasn't the only topic on the agenda during the meeting. Jassy also discussed Amazon's drone deliveries, and said he expects the company to make its one millionth drone delivery later this year. Amazon's drones, which can deliver shoebox-sized items to customers within 30 minutes, has been under development since 2013. There was an update on Amazon's Fresh and Go physical grocery stores, which began shutting down in January. He explained that the brick-and-mortar stores hadn't been as successful as hoped, accounting for less than 1% of the company's grocery sales in the last year. Investors weren't turned off by Jassy's comments, as Amazon's stock gained just over a percentage point today.

Amazon CEO sees AI doubling prior AWS sales projections to $600 billion by 2036

Amazon held one of its regular all hands meetings on Tuesday to provide employees updates on businesses ranging from drone deliveries to advertising sales to Amazon Fresh groceries. Amazon CEO Andy Jassy said during an internal all-hands meeting he expects artificial intelligence could help cloud computing unit Amazon Web Services achieve $600 billion in annual sales, double his own prior estimate. "I've been thinking for the last number of years ⁠that AWS, ⁠call it 10 years from now, could be about a $300 billion annual revenue, run rate business," Jassy said, according to a review of his comments by Reuters. "I think what's happening in AI that AWS has a chance to be at least double that." Amazon held one of its regular all hands meetings on Tuesday to provide employees updates on businesses ranging from drone deliveries to advertising sales to Amazon Fresh groceries. AWS in 2025 booked $128.7 billion in sales, up 19% from 2024. Jassy's projection suggests an average growth rate ⁠of nearly 17% every year for the next decade. He did not elaborate on how those sales might be distributed and an Amazon spokesperson declined to comment beyond Jassy's comments. Wall Street balked ⁠at Amazon's planned commitment of $200 billion in capital expenditures this year, primarily for AI development and infrastructure, sending shares down sharply. During a question and answer session Tuesday, Jassy read the query which said the expenditures "received a lot of attention" and began by saying "that's one way of putting it." AI "gives you this very unusual opportunity to build this very large business, and we have very clear and significant demand signals," he said, according to the comments reviewed by Reuters. "We're not just spending the $200 billion of capex because we're hoping AI is going to be big." He added: "The faster we grow in AWS, the more capex we have to spend shorter term, because we have to lay out all that capital for land, power, buildings, chips, servers, networking gear. We have to lay all ⁠that out a couple of years in advance of when we're going to monetize." Among other announcements during the meeting was that Amazon expects to make its one millionth delivery using drones sometime this year. That program, promising deliveries of items that can fit in a shoebox in 30 minutes or less, has been in development since at least 2013 when it was announced on CBS's "60 Minutes." Amazon, which announced the closure of its Fresh and Go physical store formats in January, said during the meeting that those brick-and-mortar stores accounted for less than 1% of its overall grocery sales. Amazon shares were up about 1.75% to $215.44.

Amazon CEO Predicts AI Will Push AWS to $600 Billion a Year | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Speaking at an internal all-hands meeting, Jassy said that for years he expected that AWS could be an annual revenue, run rate business of $300 billion in 10 years, but that now he thinks that because of AI, it "has a chance to be at least double that," according to the report, which said that Reuters' review of his comments was confirmed by an Amazon spokesperson. AWS' sales grew 19% year over year in 2025 to reach $128.7 billion, according to the report. An average growth rate of nearly 17% per year over the next decade would lift the business's sales to the level predicted by Jassy, per the report. Jassy said during the meeting that AI "gives you this very unusual opportunity to build this very large business, and we have very clear and significant demand signals," according to the report. It was reported in February that Amazon is undertaking its largest-ever capital spending program, set to reach $200 billion this year, as part of a strategic reset due to fears that AWS is losing out to rivals in landing corporate AI contracts. That report came out a little more than a week after Jassy announced the company capital expenditure would come to $200 billion in 2026, "predominantly in AWS," to add capacity for AI and core cloud workloads. "As fast as we install this capacity, this AI capacity, we are monetizing it," Jassy said during a Feb. 5 earnings call. "So it's just a very unusual opportunity. I passionately believe that every customer experience that we know of today is going to be reinvented with AI ... [and] if you really want to use AI in an expansive way, you need your data in the cloud and you need your application in the cloud." In January, AWS launched an independent cloud located in the European Union and designed to help customers meet the EU's sovereignty requirements. The AWS European Sovereign Cloud is physically and logically separate from other AWS regions and is designed to meet the needs of European governments and enterprises for sensitive data.

Amazon CEO sees AI doubling prior AWS sales projections to $600 billion by 2036

SAN FRANCISCO, March 17 (Reuters) - AmazonO> CEO Andy Jassy said during an internal all-hands meeting he expects artificial intelligence could help cloud computing unit Amazon Web Services achieve $600 billion in annual sales, double his own prior estimate. "I've been thinking for the last number of years that AWS, call it 10 years from now, could be about a $300 billion annual revenue, run rate business," Jassy said, according to a review of his comments by Reuters. "I think what's happening in AI that AWS has a chance to be at least double that." Amazon held one of its regular all hands meetings on Tuesday to provide employees updates on businesses ranging from drone deliveries to advertising sales to Amazon Fresh groceries. AWS in 2025 booked $128.7 billion in sales, up 19% from 2024. Jassy's projection suggests an average growth rate of nearly 17% every year for the next decade. He did not elaborate on how those sales might be distributed and Amazon did not immediately respond to a request for comment. Amazon shares were up about 1% to $213.87. (Reporting by Greg Bensinger; Editing by Chizu Nomiyama and Chris Reese)