Amazon’s cloud business Amazon Web Services, AWS, has largely sold out its capacity for both 2026 and 2027. A significant portion of its capacity for 2028 is also already booked, CEO Andy Jassy said in a podcast from venture capital firm Andreessen Horowitz, as reported by The Information.
Jassy explained that AWS reserves some capacity for customers using on-demand services, including the EC2 cloud service and the Bedrock AI platform. However, the larger capacity blocks have largely already been sold.
At the same time, he emphasized that Amazon is able to quickly adjust its investments if demand were to slow. The company normally only needs to order servers and networking equipment a few months in advance, making it possible to limit purchases if the planned data center capacity is not needed.
Jassy also highlighted the acquisition of chipmaker Annapurna Labs more than ten years ago as possibly Amazon’s best acquisition to date. The business is behind the company’s internally developed Graviton processors and Trainium AI chips.
He also emphasized the importance of the partnership with AI company Anthropic, which uses Amazon’s Trainium chips. According to Jassy, the partnership has been beneficial for both parties and contributed to the development of Amazon’s own chip technology.
