Amazon's cloud computing capacity is nearly sold out through 2027, with commitments extending into 2028, according to CEO Andy Jassy. Amazon is facing challenges in meeting the growing demand for AI infrastructure, evidenced by its capital expenditure plan of $220 billion for 2026. Jassy acknowledged the need for increased investment in cloud computing capacity, noting that 2027 and 2028 are largely sold out. Amazon's EC2 service provides cloud servers for running applications, while Bedrock gives customers access to AI models for building generative AI applications. Amazon is scheduled to report third quarter results on October 29.
Key points
Amazon's cloud computing capacity is nearly sold out through 2027.: Amazon's cloud computing capacity is nearly sold out through 2027.
Amazon is facing challenges in meeting the growing demand for AI infrastructure.: Amazon is facing challenges in meeting the growing demand for AI infrastructure.
Jassy acknowledged the need for increased investment in cloud computing capacity.: Jassy acknowledged the need for increased investment in cloud computing capacity.
Sources checked by our analysis pipeline: 1
Oct 23 : Amazon CEO Andy Jassy said on Friday that Amazon Web Services' cloud computing capacity is largely sold out through 2027, with significant commitments extending into 2028, on growing demand for AI infrastructure.
In a video podcast with Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg, Jassy said Amazon is struggling to keep pace with the insatiable demand from AI labs and enterprises.
• Earlier this year, Amazon had said it would spend about $220 billion in capital expenditure for 2026
• Jassy said the company "could invest a lot more and it wouldn't be a bad use of capital," considering cloud-computing capacity for 2026 is already sold out
• "2027 is largely sold out. We always leave a certain amount for on demand and our inference service bedrock, or EC2, but largely sold out all the big chunks. A good chunk of 2028 is sold out," he said
• EC2 is an AWS service that provides cloud servers for running applications, while Bedrock gives customers access to AI models to build generative AI applications
• Amazon is scheduled to report third quarter results on October 29
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