Amazon(AMZN.US) CEO Boasts: With AI Boost, AWS Revenue to Target $600 Billion in a Decade

Bloomberg News has learned that Amazon (AMZN.US) CEO Andy Jassy stated at an all-hands employee meeting that artificial intelligence is expected to drive Amazon Web Services (AWS) to achieve annual sales of $600 billion, doubling previous expectations.

According to the meeting notes, Jassy said, “Over the past few years, I’ve been thinking that in ten years from now, AWS’s annual revenue run rate could reach about $300 billion. I believe the rapid development in AI makes it at least possible for AWS to double that.”

Amazon held its regular all-hands meeting on Tuesday, updating employees on the latest developments across various businesses, including drone delivery, advertising sales, and Amazon Fresh groceries.

AWS is projected to reach $128.7 billion in sales in 2025, a 19% increase from 2024. Jassy’s forecast implies an average annual growth rate of nearly 17% over the next decade. He did not specify how these sales might be distributed, and an Amazon spokesperson declined to comment beyond Jassy’s remarks.

Wall Street has expressed skepticism about Amazon’s plan to invest $200 billion in capital expenditures this year—mainly for AI development and infrastructure—leading to a significant drop in stock price. During Tuesday’s Q&A, Jassy read a question noting that these expenditures are “widely watched,” and he responded, “That’s a restrained way to put it.”

According to the meeting notes, Jassy said AI “presents a rare opportunity to build this massive business, and we have very clear and significant demand signals. We are investing this $200 billion in capital expenditures not just because we expect AI to flourish.”

He added, “The faster AWS grows, the more capital expenditures we need to make in the short term, because we have to invest years in land, power, buildings, chips, servers, and network equipment—all of which won’t generate returns for several years.”

Other updates from the meeting included Amazon’s expectation to complete its 1 millionth drone delivery this year. The drone delivery project has been in development since it was announced on CBS’s 60 Minutes in 2013, promising to deliver items the size of a shoebox within 30 minutes or less.

In January, Amazon announced the closure of its Fresh and Go physical stores. The company stated during the meeting that these stores account for less than 1% of its overall grocery sales.

Amazon’s stock rose about 1.75% on Tuesday, closing at $215.44.