AWS Eyes Trillion-Dollar Revenue Amid AI Infrastructure Surge

Amazon Web Services (AWS) is positioning itself for a massive scale-up, with CEO Andy Jassy projecting the cloud division will become a trillion-dollar business within five to ten years. As The Register first reported, Jassy believes AWS could see growth of 40% or more in 2027 or 2028.

The acceleration is fueled by an aggressive infrastructure build-out; Jassy stated that AWS is installing a new AI accelerator approximately every 14 seconds. This expansion is supported by significant capital expenditure, with the company spending $75.9 billion last quarter and expecting to spend $220 billion in 2026.

Jassy noted that AI is driving a symbiotic relationship between new and legacy services. He highlighted that Bedrock AI services is the fastest-growing multi-billion dollar service in the company's history. Because customers want AI inferencing to be located near their existing data and applications, AI workloads are driving increased demand for core compute and storage services, which Jassy said are growing at their fastest rates in several years.

This growth trajectory creates a stark contrast within Amazon's broader business. While AWS is scaling rapidly, the company's retail and operations segment grew by only six percent with thinner margins. Jassy also pointed out that Prime Video is now profitable, with a revenue run rate reaching into the tens of billions of dollars. AWS is currently on track for $184 billion in annual revenue this financial year, following a Q3 revenue total of nearly $46 billion.