SEATTLE, 17 March 2026 – Amazon is doubling down on artificial intelligence, with CEO Andy Jassy projecting that its cloud division, Amazon Web Services, could generate as much as US$600 billion in annual revenue by 2036, double his previous long-term estimate.
The revised outlook reflects the accelerating impact of AI on cloud demand, as enterprises increasingly require massive computing power, storage, and infrastructure to support next-generation applications.
AI Supercharges AWS Growth Outlook
Jassy had previously estimated AWS could reach US$300 billion in annual revenue within a decade. However, the rapid adoption of AI has significantly expanded that ceiling.
“I think what’s happening in AI… AWS has a chance to be at least double that,” Jassy said, pointing to a structural shift in demand for cloud infrastructure.
AWS, which recorded US$128.7 billion in revenue in 2025, would need to sustain roughly 17% annual growth over the next decade to reach the new US$600 billion target.
Massive Investment to Support AI Demand
To capitalise on this opportunity, Amazon is undertaking an aggressive capital expenditure strategy, with plans to invest around US$200 billion in AI infrastructure, covering data centres, servers, networking equipment, land, and power capacity.
Jassy defended the scale of spending, stressing that it is driven by real customer demand rather than speculative growth bets.
The investment aligns with a broader industry trend, as Big Tech firms collectively pour hundreds of billions into AI infrastructure in a race to dominate the next computing cycle.
AI Reshaping the Cloud Industry
The surge in AI workloads is transforming cloud computing economics:
- Higher compute intensity → increased demand for GPUs and specialised chips
- Longer processing cycles → greater infrastructure utilisation
- Enterprise adoption → sustained multi-year growth pipeline
This shift is positioning AWS, already the world’s largest cloud provider, as a central platform for AI development and deployment.
Balancing Growth and Investor Concerns
Despite the strong growth narrative, Amazon’s aggressive spending has raised concerns among investors about returns and capital discipline. The company’s earlier announcement of its US$200 billion capex plan triggered market volatility and questions about near-term profitability.
However, Amazon’s leadership maintains that AI represents a “once-in-a-generation” opportunity, justifying the scale of investment.
A Defining Decade for Cloud and AI
For investors, the implications are profound. If realised, a US$600 billion AWS business would redefine the scale of cloud computing and cement Amazon’s leadership in AI infrastructure.
The development also reinforces a broader theme shaping global markets:
AI is not just a software story, it is an infrastructure supercycle.
As companies race to build and deploy AI capabilities, cloud providers like AWS stand to capture a disproportionate share of value, provided their massive investments translate into sustained demand and monetisation.
