Amazon Bets Big on AI as Jassy Targets Trillion-Dollar AWS and Alexa Gains New Shopping Powers

Amazon is doubling down on artificial intelligence across both its cloud and consumer businesses, with CEO Andy Jassy reaffirming his ambition for AWS to become a trillion-dollar revenue business while the company adds a wave of new AI shopping features to Alexa ahead of the holiday season.

Speaking on Amazon’s quarterly earnings call, Jassy said no business has ever reached a trillion dollars in annual revenue, and that what Amazon is building is unprecedented. He said AWS, now running at an annualized revenue rate of $184 billion, can grow by more than 40% in both 2027 and 2028 and reach a trillion dollars in revenue within five to ten years. AWS revenue rose 39% year over year, marking its sixth straight quarter of steady growth.

Reaching that goal will require heavy investment. Jassy said Amazon still expects 2026 cash capital expenditure of around $220 billion, mostly for AWS, and plans to spend meaningfully more in 2027, adding that the company has clear visibility into financial returns. Analysts repeatedly pressed him on the spending, growth signals and expected margins. Jassy described the AI boom as a once-in-a-lifetime opportunity driven by historic cloud demand, said enterprise AI adoption is still in its very early days, and argued that Amazon can fund the plan, which he said will permanently change the company’s size and revenue. Investors remained cautious, with shares falling about 6% in after-hours trading.

Amazon’s heavy outlay mirrors that of other cloud providers. Microsoft recently posted another record quarter driven largely by its cloud business, while also spending heavily on AI infrastructure.

On the consumer side, Amazon has added more than 100 shopping capabilities to Alexa. Users can now create, register, view and edit lists, adjust subscription deliveries, update delivery instructions such as addresses or drop-off details, and ask about Prime or Audible subscriptions, billing and payment issues.

The update builds on other AI shopping tools Amazon has introduced this year, including a shopping assistant in its search bar and alerts about new products and offers. The company said the number of people using its agentic features has grown eightfold since the start of the year, and that more than 400 million consumers have used Alexa for shopping over the past 12 months.