Amazon CEO Andy Jassy has forecast that Amazon Web Services (AWS) could generate $600 billion in annual revenue by 2036, up from a prior $300 billion projection, citing the transformative impact of artificial intelligence.
In fiscal 2025, AWS generated $128.7 billion in revenue, growing 19% year-over-year. To meet Jassy’s target, AWS would need to sustain approximately 17% annual growth over the next decade-a pace considered feasible given current momentum.
AWS remains Amazon’s most profitable segment, contributing around 70% of the company’s operating income despite representing only 17% of total revenue. Jassy emphasized that the company’s $200 billion capital expenditure plan for fiscal 2026-mostly allocated to AI infrastructure-is grounded in clear market demand, not speculation.
He noted that AI-driven expansion requires upfront investment in land, power, construction, and hardware, with monetization expected years later. The cloud unit continues to lead in scalability and margins, contrasting sharply with Amazon’s lower-margin e-commerce operations.
Jassy also confirmed Amazon expects to make its one millionth drone delivery this year, while acknowledging the closure of its Fresh & Go grocery stores due to underperformance.