Another technology giant has forecast a huge lift in revenue from artificial intelligence (AI), with Amazon.com Inc reportedly expecting a doubling in annual sales from its Amazon Web Services (AWS) cloud computing subsidiary.
Amazon Chief Executive Officer Andy Jassy told employees AI could help AWS achieve US$600 billion (A$850 billion) in annual sales by 2036, according to Reuters.
This is double his own prior estimate, the news service reported in this exclusive article.
This comes a day after the world’s most valuable company, Nvidia, said it expected to double revenue to US$1 billion (A$1.41 trillion) by 2027.
“I've been thinking for the last number of years that AWS, call it 10 years from now, could be about a $300 billion annual revenue, run rate business,” Jassy said.
“I think what's happening in AI that AWS has a chance to be at least double that.”
Amazon held one of these regular meetings on Tuesday to update employees about Amazon’s businesses.
Given AWS’ sales increased 19% to $128.7 billion in 2025, Jassy’s forecast projection implies an average growth rate of nearly 17% every year for the next decade.
He did not elaborate on how those sales might be distributed, and an Amazon spokesperson declined to comment beyond Jassy's comments, according to Reuters.
During a question and answer session, he was asked about the market’s concerns at Amazon’s $200 billion capital expenditures (capex) plans this yearn which are mostly for AI development and infrastructure.
Jassy said Amazon had “very clear and significant demand signals" that AI provided the company with a “very unusual opportunity to build this very large business".
"We're not just spending the $200 billion of capex because we're hoping AI is going to be big," he was quoted by Reuters as telling staff.
"The faster we grow in AWS, the more capex we have to spend shorter term, because we have to lay out all that capital for land, power, buildings, chips, servers, networking gear. We have to lay all that out a couple of years in advance of when we're going to monetise," he said.
