Amazon CEO Andy Jassy Tells Staff AI Could Push AWS Revenue to $600 Billion by 2036, Doubling Earlier Forecast

When Amazon CEO Andy Jassy stood before employees at a company-wide all-hands meeting on Tuesday, the message was unmistakable: artificial intelligence has fundamentally changed the ceiling for the company's cloud computing division. Jassy told staff he now believes Amazon Web Services could reach $600 billion in annual revenue by 2036, doubling the $300 billion target he had previously set for the same timeframe Amazon CEO reportedly sees AWS reaching $600B in annual sales amid AIinvesting.com·Secondary.

The disclosure, first reported by Reuters based on a review of Jassy's remarks, represents the most explicit projection yet from a major cloud provider CEO about the financial scale AI workloads could reach over the next decade. AWS recorded $128.7 billion in revenue during fiscal 2025, a 19 percent increase from the prior year Amazon CEO reportedly sees AWS reaching $600B in annual sales amid AIinvesting.com·Secondary. Reaching the new $600 billion target would require an average annual growth rate of approximately 17 percent sustained over ten consecutive years — ambitious, but broadly in line with the trajectory the business has maintained in recent quarters.

Jassy framed the revised projection as a direct consequence of the demand patterns Amazon is seeing across its AI services. He indicated that the company has clear and significant demand signals for its AI offerings, and that the spending is not speculative Amazon CEO reportedly sees AWS reaching $600B in annual sales amid AIinvesting.com·Secondary. The remarks came during a question-and-answer session in which an employee noted that Amazon's capital expenditure plans had attracted considerable outside attention. Jassy opened his response by acknowledging, in understated fashion, that the scrutiny was warranted Amazon CEO reportedly sees AWS reaching $600B in annual sales amid AIinvesting.com·Secondary.

The all-hands took place against a backdrop of mounting investor anxiety over Amazon's spending trajectory. The company committed earlier this year to $200 billion in capital expenditures for fiscal 2026, the vast majority of it earmarked for AI development and data center infrastructure Amazon CEO reportedly sees AWS reaching $600B in annual sales amid AIinvesting.com·Secondary. Wall Street reacted sharply to the announcement when it was first disclosed, sending Amazon shares lower on concerns about near-term profitability being sacrificed for long-term AI positioning. The stock has declined more than six percent year-to-date, underperforming the broader market.

Jassy addressed those concerns directly, explaining the structural logic behind the front-loaded investment. He noted that the faster AWS grows, the more capital Amazon must deploy in the short term — covering land, power infrastructure, buildings, chips, servers, and networking equipment — all of which must be procured years before the revenue they generate materializes Amazon CEO reportedly sees AWS reaching $600B in annual sales amid AIinvesting.com·Secondary. It is a familiar dynamic in capital-intensive industries, but one that tests the patience of shareholders accustomed to Amazon's historically asset-light marketplace model.

The projection carries significant implications for the competitive landscape in cloud computing. AWS remains the largest cloud infrastructure provider globally, but faces intensifying pressure from Microsoft Azure and Google Cloud, both of which have been investing aggressively in their own AI capabilities. Microsoft has leaned heavily into its partnership with OpenAI, while Google has pushed its Gemini models and custom TPU chips as differentiators. Amazon, for its part, has been scaling its proprietary Trainium chips and expanding its data center footprint at a pace that rivals both competitors. The question is no longer whether the hyperscalers will spend heavily on AI — they all will — but whether the demand materializes quickly enough to justify the combined hundreds of billions of dollars flowing into infrastructure across the industry.

Skeptics have reason to question whether the $600 billion figure is achievable. Cloud revenue projections of this magnitude assume sustained enterprise adoption of AI workloads at a scale that has not yet been demonstrated over a full business cycle. The global cloud infrastructure market crossed approximately $650 billion in total spending in 2025, meaning Jassy is effectively projecting that AWS alone could approach the size of today's entire cloud market within a decade. If AI adoption hits regulatory headwinds, faces an enterprise spending pullback during a recession, or runs into practical limitations around data center power consumption and chip supply, the timeline could stretch considerably. History offers a cautionary precedent: previous waves of technology enthusiasm — from the dot-com era to early blockchain hype — produced ambitious revenue forecasts that took far longer to materialize than their proponents anticipated, when they materialized at all.

There are also questions about margins. AWS has historically been Amazon's profit engine, contributing a disproportionate share of operating income relative to its revenue footprint. But the capital intensity of AI infrastructure is fundamentally different from the traditional cloud computing model that built AWS's margin profile. Data centers optimized for AI training and inference require far more power, more specialized hardware, and more cooling capacity than conventional server farms. Whether AWS can maintain its margin advantage while spending at this unprecedented scale remains an open question that will take years to answer definitively.

Beyond the AI forecast, Jassy used the all-hands to update staff on other parts of the business. Amazon expects to complete its one millionth drone delivery sometime this year, a milestone for a program that has been in development since 2013 and was first publicly announced on 60 Minutes . The company also acknowledged that its Fresh and Go physical grocery store formats, which it announced closing in January, accounted for less than one percent of its overall grocery sales Amazon CEO reportedly sees AWS reaching $600B in annual sales amid AIinvesting.com·Secondary. Amazon shares were trading up approximately 1.75 percent at $215.44 following the meeting Amazon CEO reportedly sees AWS reaching $600B in annual sales amid AIinvesting.com·Secondary.

The broader significance of Jassy's remarks extends beyond Amazon's own balance sheet. If the CEO of the world's largest cloud provider genuinely believes AI will double the addressable market for cloud infrastructure services, it has implications for energy policy, semiconductor manufacturing, real estate development near power substations, and the labor markets that serve these industries. Data center construction is already straining power grids in Northern Virginia, Ireland, and parts of Southeast Asia. A future in which AWS alone generates $600 billion annually suggests an infrastructure buildout of historic proportions — one that will require policy coordination between governments and the private sector on a scale that does not currently exist.

For now, the market appears to be cautiously recalibrating. Amazon's stock nudged higher on the day of the all-hands, suggesting that at least some investors view the revised projection as a credible signal rather than mere executive optimism. But the true test will come over the next several quarters, as Amazon reports whether AI-driven revenue growth is tracking at a pace consistent with Jassy's decade-long vision — or whether the $600 billion figure will join the long list of tech industry projections that sounded compelling in a boardroom but proved elusive in practice.