Amazon CEO Jassy Says $220 Billion AI Spend Still Falls Short as AWS AI Revenue Tops $25 Billion Annualized

Amazon CEO Andy Jassy said generative AI compute demand continues to outstrip supply even as the company invests $220 billion this year, with capacity for 2026 fully sold out, 2027 nearly sold out and most of 2028 already committed, he said in an a16z podcast interview. AWS AI business has surpassed a $25 billion annualized revenue run rate, versus roughly $60 million in AWS's first three years, Jassy said. He pushed back on overcapacity concerns, noting data centers take about two years to build and last 30 years, while servers are ordered months ahead with five-year contracts that break even in about three years. Jassy flagged AI inference costs as still an order of magnitude above ideal, driving Amazon's custom silicon push: Graviton chips offer roughly 40% better price-performance than x86 processors and Trainium accelerators 30% to 40%. He also cited internal gains, saying six Bedrock engineers rebuilt an inference engine in 76 days, work that previously took 40 engineers a year.