AWS plans to spend big to reach $1 trillion revenue
TechCrunch: AWS will be a $1T business, Jassy says. But first, it will spend big.
Amazon wants to be the king of AI cloud computing and become the first $1 trillion revenue business. But to do that it will have to continue on its capex spending spree, its CEO said Thursday.
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The CEO of Amazon stated that AWS can become a trillion-dollar revenue business within the next five to 10 years, but the company must significantly increase its capital spending to build the infrastructure required to support this growth. Amazon expects to spend approximately 220 billion dollars on capital expenditures in 2026, with the majority going to AWS, and plans to spend meaningfully more in 2027. AWS revenue has grown 39 percent compared to the previous year and the CEO forecasts growth of 40 percent in both the following two years, characterizing the current AI boom as a "once in a lifetime opportunity" that justifies the substantial investment. Investors expressed concern about this spending strategy, with stock shares down about 6 percent in after-market trading, though other cloud providers are pursuing similar investment approaches.
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