AWS Targets $1 Trillion Revenue, Plans $220 B CapEx in 2026

In Amazon’s latest quarterly earnings call, CEO Andy Jassy announced that Amazon Web Services (AWS) is aiming to become a trillion‑dollar‑a‑year revenue business – a milestone no cloud provider has ever reached. Jassy disclosed that Amazon expects cash capital expenditures (CapEx) of roughly $220 billion in 2026, with the bulk earmarked for expanding AWS’s infrastructure, and that spending will rise “meaningfully more” in 2027 to lock in future returns. Today AWS runs at an annualized revenue run‑rate of $184 billion, having posted a 39 % year‑over‑year increase in the most recent quarter. The CEO projected a further 40 % growth in both 2027 and 2028, driven by unprecedented global demand for artificial intelligence (AI) workloads. Jassy framed the outlay as “money well spent,” calling the AI boom a “once‑in‑a‑lifetime opportunity” that justifies the scale of investment. He added that the company is still in the “very early days” of enterprise AI adoption and that the strategy is already delivering results. Nevertheless, investors remained uneasy; Amazon’s shares slipped about 6 % in after‑hours trading. The AI‑driven surge is a double‑edged sword for the cloud sector, as rivals such as Microsoft are also pouring billions into their platforms while reporting record revenue growth. AWS must sustain its pace of innovation to hit the trillion‑dollar target within the next five to ten years.