Amazon CEO Andy Jassy revealed that Amazon Web Services (AWS) has largely sold-out computing capacity for 2026, and 2027 including substantial chunks of 2028 already committed to major corporate customers and artificial intelligence laboratories.
Speaking on a podcast appearance, Jassy noted that despite a massive capital expenditure buildout—pegged at roughly $220 billion for the year—surging enterprise and AI-driven workloads continue to completely outpace infrastructure supply.
While major bulk allocations are gone through 2027, AWS explicitly retains a designated tier of computing power for on-demand services, Amazon EC2, and its generative AI platform, Amazon Bedrock, ensuring smaller developers and individual users are not entirely locked out.
The unprecedented demand has propelled the AWS artificial intelligence business past a $25 billion annualized run rate within just three years of the generative AI boom, outpacing the historical growth rate of AWS’s original cloud launch.
Jassy emphasized that physical constraints, including data center real estate, power availability, and specialized memory, mean the infrastructure shortage will extend well past 2027, forcing hyperscalers to aggressively deploy proprietary hardware like Trainium and Graviton chips to maximize efficiency.
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.
