Andy Jassy told investors AWS will become a $1 trillion business but must keep ramping capex to win the AI cloud race.
Amazon CEO Andy Jassy said Thursday that AWS is on track to become the first trillion-dollar revenue business, but getting there requires continued heavy capital spending on AI infrastructure. The comments come as hyperscalers compete to lock in enterprise AI workloads with massive data center buildouts.
Jassy's framing puts Amazon firmly in the same capex arms race as Microsoft, Google, and Meta, all of whom have signaled multi-year spending commitments to secure compute capacity ahead of demand.
The trillion-dollar target only works if AWS outspends rivals on chips and data centers now, meaning margins will stay compressed for years before the payoff. Operators betting on cloud AI pricing stability should expect continued volatility as providers race for capacity, not customers.
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