Amazon CEO Andy Jassy believes that AI could at least double the firm’s cloud computing business, Amazon Web Services (AWS), in just 10 years.
Speaking at an internal all-hands meeting, Jassy says AI could boost AWS’s revenue to $600 billion by 2036, reports Reuters.
“I’ve been thinking for the last number of years that AWS, call it 10 years from now, could be about a $300 billion annual revenue run-rate business. I think what’s happening in AI is that AWS has a chance to be at least double that.”
Last month, Amazon revealed that it plans to allocate $200 billion in AI CapEx this year. At the time, CFO Brian Olsavsky said that the technology has become a money printer for the company.
According to Jassy, Amazon made the massive AI investment commitment because the company believes it will pay off over the long haul.
“[AI] gives you this very unusual opportunity to build this very large business, and we have very clear and significant demand signals. We’re not just spending the $200 billion of CapEx because we’re hoping AI is going to be big…
The faster we grow in AWS, the more CapEx we have to spend shorter term, because we have to lay out all that capital for land, power, buildings, chips, servers [and] networking gear. We have to lay all that out a couple of years in advance of when we’re going to monetize.”
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