Amazon Web Services (AWS) has sold out most of its cloud capacity for 2027 and a substantial portion of 2028, according to CEO Andy Jassy speaking on a podcast. Despite planned capital expenditure of about $220 billion in 2026, Amazon is struggling to meet demand from AI labs and enterprise customers, and much of its 2026 capacity is already booked. Jassy described AI demand as a “barbell”: AI labs are consuming computing resources at an unprecedented scale, while the middle of the market, where everyday business software has yet to widely adopt AI, remains largely untapped. He said inference is still about an order of magnitude too expensive to be used pervasively, suggesting costs need to fall roughly tenfold. Amazon's Trainium chips are positioned as a lower-cost option, offering 30% to 40% better price-performance than comparable processors, and Amazon has disclosed more than $225 billion in future Trainium revenue commitments, including deals involving Anthropic and OpenAI.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Amazon cloud is nearly sold out through 2027 . Can its AI spending keep up with demand ?
Read the original on livemint.com ↗
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cloud computingartificial intelligenceAI investmentAMZNNVDA
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/23/2026 | 248.04 |
| Change that session | -0.93% |
NVDA
▲ Likely positiveNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
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