Bottom line: Amazon's most lucrative division may be heading for an even steeper growth curve. CEO Andy Jassy told employees this week that artificial intelligence could propel Amazon Web Services to $600 billion in annual revenue within a decade – a figure that would double his earlier forecast for the business.
Jassy's comments, delivered at an internal all-hands meeting and reviewed by Reuters, reflect a growing conviction within Amazon that AI will reshape not only its cloud segment but also the company's broader strategy. While he once envisioned AWS becoming a $300 billion-a-year business over the next decade, Jassy now believes AI gives the division a chance to reach at least double that figure.
The remarks come as Amazon faces heightened scrutiny over its spending plans. This year, the company expects to commit about $200 billion in capital expenditures, much of it directed toward AI infrastructure including data centers, chips, and networking hardware.
Investors have reacted warily, sending Amazon's stock lower after the company detailed the outlay in February. Jassy acknowledged the response, describing it as "one way of putting it," and defended the spending as both necessary and justified.
Credit: App Economy Insights
He argued that AI demand signals are too strong to ignore, describing the current expansion as a step Amazon must take several years before those investments begin to pay off. "The faster we grow in AWS, the more capex we have to spend short term," he said, explaining that infrastructure buildouts for the cloud unit require securing land, power, and facilities well ahead of revenue generation.
The stakes are significant. AWS generated $128.7 billion in 2025, up 19% from the previous year. Meeting Jassy's projection would require the cloud division to sustain average annual growth of roughly 17% over the next decade – an ambitious pace given intensifying competition from Microsoft and Google. Amazon provided no further breakdown of how those future sales might materialize, and a company spokesperson declined to comment beyond Jassy's remarks.
The meeting also served as a broad update on Amazon's expanding business portfolio, with topics ranging from drone delivery tests to its evolving grocery strategy. The company expects to complete its one millionth drone delivery sometime this year, a milestone for a program first unveiled in 2013. The goal is to deliver small packages – those that can fit in a shoebox – within 30 minutes.