Amazon CEO Andy Jassy told employees on March 17 that artificial intelligence could push Amazon Web Services to $600 billion in annual revenue within the next decade, doubling the $300 billion forecast he had previously projected, according to a Reuters exclusive. AWS generated $128.7 billion in 2025, meaning the cloud unit would need to sustain roughly 17% average annual growth over the next 10 years to hit that target.
- Andy Jassy doubled his AWS revenue forecast from $300 billion to $600 billion annually by 2036, citing surging enterprise AI demand during a March 17, 2026, all-hands meeting.
- Amazon has committed a record $200 billion in capital expenditures for 2026, with the majority allocated to AI data center infrastructure.
- AWS accounted for roughly 70% of Amazon’s total operating profit in 2025 despite generating only 17% of the company’s total revenue.
What Jassy Said About AWS and AI Growth
Jassy made the revised projection during an internal all-hands meeting where he provided updates across Amazon’s business divisions, from drone deliveries to advertising. “AI gives you this very unusual opportunity to build this very large business, and we have very clear and significant demand signals,” Jassy told employees, according to Reuters. An Amazon spokesperson confirmed the remarks.
The CEO emphasized that the $200 billion Amazon plans to spend on capital expenditures in 2026 is not speculative. “We’re not just spending $200 billion of capex because we’re hoping AI is going to be big,” Jassy said. He added that the company needs to lay out infrastructure investments roughly two years before it begins monetizing that capacity, but stressed that new AI capacity is being put to work almost immediately: “As fast as we install this capacity, we are monetizing it.”
Background on AWS and the Cloud Market
AWS remains the world’s largest cloud infrastructure provider, though its share among the top three players has slipped as Microsoft Azure and Google Cloud have gained ground. Amazon, Microsoft, and Google together controlled 63% of enterprise cloud infrastructure spending in the third quarter of 2025, according to industry data, up from 61% two quarters earlier. The global cloud market itself grew from $68 billion to $107 billion over that same eight-quarter stretch.
Amazon has been expanding its AI capabilities through partnerships, including a deal with OpenAI worth up to $50 billion over multiple years, collaborations with Nvidia on AI automotive assistants, and work with Cerebras to accelerate inference speeds. The company also launched a European sovereign cloud in January 2026 to serve government and regulated-industry clients. Jassy has built his leadership approach around long-term infrastructure bets, and the AWS forecast reflects that pattern.
What This Means for the Cloud and AI Ecosystem
A $600 billion annual run rate for a single cloud provider would represent a fundamental shift in enterprise technology spending. For context, the entire global cloud infrastructure market generated roughly $107 billion in a single quarter in late 2025. If Jassy’s projection holds, AWS alone would account for a substantial share of what could become a trillion-dollar-plus annual market.
The projection signals that Amazon is going all in on AI as the next driver of cloud adoption. For startups and enterprises that build on AWS, the scale of investment suggests continued expansion of AI tooling, more competitive pricing as infrastructure scales, and a cloud platform increasingly optimized for machine learning workloads. Wedbush analyst Dan Ives called the moment a “renaissance of growth” for Amazon. Amazon stock rose 1.63% to $215.20 on March 17 following the news.
Frequently Asked Questions
How Much Revenue Does Andy Jassy Expect AWS to Generate by 2036?
Andy Jassy said during a March 17, 2026, internal meeting that AI could push AWS to $600 billion in annual revenue by 2036, double his previous estimate of $300 billion. AWS generated $128.7 billion in revenue in 2025.
How Much Is Amazon Spending on AI Infrastructure in 2026?
Amazon committed a record $200 billion in capital expenditures for 2026, with the majority going toward AI data center infrastructure for AWS.
What Is Driving the Growth in AWS Revenue?
Enterprise demand for AI training and inference services is the primary growth driver, with Jassy stating that Amazon is monetizing new AI capacity as fast as it can install it.
