Amazon(AMZN.US)CEO boasts: With AI support, AWS revenue aims for $600 billion in ten years

Amazon (AMZN.US) CEO Andy Jassy said in an all-hands meeting with internal employees that it expects artificial intelligence to drive its cloud computing division, Amazon Web Services (AWS), to reach $600 billion in annual sales—doubling its earlier forecast.

According to the meeting notes, Jassy said, “In the past few years, I’ve been thinking about the decade from now. I believe AWS’s annual revenue run rate could be around $300 billion. I think the booming growth in the AI space gives AWS at least a chance to grow by doubling.”

Amazon held its routine all-hands meeting with employees on Tuesday, updating them on the latest progress across a range of businesses, from drone delivery and ad sales to Amazon Fresh grocery items.

AWS achieved $128.7 billion in sales in 2025, up 19% from 2024. Jassy’s forecast implies that the average annual growth rate over the next decade would need to be close to 17%. He did not spell out how these sales might be distributed, and an Amazon spokesperson declined to comment on anything beyond Jassy’s remarks.

Wall Street questioned Amazon’s plan to spend $200 billion on capital expenditures this year (primarily for AI development and infrastructure), leading to a sharp drop in the stock price. In Tuesday’s Q&A session, Jassy read a question saying these outlays were “widely watched,” and opened by saying, “That is a restrained way to put it.”

According to the meeting notes, Jassy said AI “provides a rare opportunity to build this enormous business, and we have very clear and unmistakable demand signals. We are investing these $200 billion in capital expenditures, not just because we’re betting that AI will boom.”

He added, “The faster AWS grows, the more capital expenditures we have to make in the short term, because we need to invest years ahead in land, power, buildings, chips, servers, network equipment, and everything else, and those investments only generate returns years later.”

Other updates from the meeting included: Amazon expects to complete its one-millionth drone delivery this year. The drone delivery project has been under development since at least the announcement on CBS’s “60 Minutes” in 2013, and it promises delivery of items the size of a shoebox in 30 minutes or less.

In January this year, Amazon said it would shut down its Fresh and Go physical store formats. At the meeting, the company said these physical stores account for less than 1% of its total grocery sales.

Amazon’s stock rose about 1.75% on Tuesday, closing at $215.44.