Amazon CEO: AI may boost AWS sales to $600 billion by 2036, doubling previous expectations

According to media reports, at an internal all-hands meeting, Amazon CEO Andy Jassy said he expects artificial intelligence will help the cloud computing division AWS achieve $600 billion in annual sales, a number twice his previous expectation. "In recent years, I've been thinking that in about 10 years, AWS might be a business with annual revenue of around $300 billion. I believe, with the development of AI, AWS has the opportunity to at least reach twice that scale."

Amazon held its routine all-hands meeting on Tuesday to update employees on business progress, covering areas from drone delivery to advertising sales, and the Amazon Fresh grocery business.

AWS’s sales in 2025 are projected to be $128.7 billion, a 19% year-over-year increase. Jassy's forecast means an average annual growth rate of nearly 17% in the next decade. He did not specify how these revenues would be distributed.

Wall Street has expressed concern about Amazon’s plan to invest around $200 billion in capital expenditures this year, which led to a significant drop in the stock price at one point. The capital expenditures are mainly for AI development and infrastructure. During Tuesday’s Q&A session, Jassy read a question noting the attention this spending has received and responded: That’s one way of putting it. He said:

AI has provided a very rare opportunity to build an extremely large-scale business, and we have already seen very clear and strong signals of demand. We are not investing this $200 billion in capital just because we hope AI will be huge.

The faster AWS grows, the more capital expenditure we need to invest in the short term, because we must invest in land, power, construction, chips, servers, and network equipment ahead of time. These investments must be completed several years before realizing returns.

Another piece of information from the meeting: Amazon expects to complete its one millionth drone delivery this year. This project focuses on delivering items the size of a shoebox within 30 minutes.

Additionally, Amazon stated that its Fresh and Go offline stores, which were announced to be closed in January this year, account for less than 1% of the company’s total grocery sales.

On Tuesday, Amazon's stock price rose about 1.75% to $215.44.

Risk warning and disclaimerThe market has risks, investment needs caution. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article suit their specific circumstances. You are responsible for any investment based on this article.