Amazon forecasts $600B AWS AI revenue, plans major capex surge
Amazon CEO Andy Jassy told employees he expects AI to more than double AWS’s cloud revenue target to around $600 billion annually, up from prior forecasts. To support this expansion, Amazon plans substantial capex increases on land, power, buildings, chips, servers and networking gear.
1. Forecast for AWS AI Revenue
At an all-hands meeting, CEO Andy Jassy announced that AI-driven demand could push AWS annual revenue to approximately $600 billion, more than doubling previous cloud growth estimates.
2. Capex and Infrastructure Plans
To handle surging AI workloads, Amazon will ramp up capital spending on data center land, power capacity, buildings, custom chips, servers and networking equipment to ensure sufficient compute and energy supply.
3. Historical AWS Growth
AWS revenue rose from a mid-$40 billion run rate in 2020 to $128.7 billion in 2025, reflecting a 19% year-over-year increase, underscoring the unit’s steady expansion prior to the new AI projection.
4. Strategic Implications
By positioning AWS as the primary infrastructure for AI model providers, Amazon aims to entrench its cloud utility role and capture a larger share of the emerging intelligence economy, potentially boosting long-term valuation.