Amazon CEO Andy Jassy Foresees Strong AI Demand Through 2028
During Amazon's second-quarter earnings call, CEO Andy Jassy highlighted the company’s growing demand for artificial intelligence infrastructure that is already extending into 2028. Despite significant investments in expanding capacity, he noted ongoing shortages through at least 2027 and described future demand as 'striking.' Amazon Web Services (AWS) reported Q2 revenue of $42.2 billion, a year-over-year increase of 37%, marking its fastest growth rate in nearly five years. The company also raised its projected cash capital expenditures for 2026 to approximately $220 billion due to rising memory costs and continued demand. Jassy attributed the long-term AI infrastructure runway to enterprises still early in large-scale adoption of inference technologies, with about 85% of global IT spending currently on-premises. He expects a gradual shift toward cloud-based solutions over the next decade or two.
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Topics: AI AWS capacity expansion demand forecasting