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Update What changed

Amazon chief executive Andy Jassy says a good chunk of AWS cloud capacity for 2028 is already sold, extending the squeeze beyond the largely booked 2027 capacity already reported in the live story. Reuters reported his comments in a Yahoo Finance article published on 23 October.

Jassy said AWS leaves some capacity available on demand, including for its Bedrock and EC2 services. But he also said Amazon could invest considerably more in infrastructure and that doing so would not be a bad use of capital.

Amazon had previously said it expected to spend about $220 billion on capital expenditure in 2026. The latest comments point to demand that may keep testing both the company’s capacity and its willingness to build. For businesses planning AI workloads, securing cloud capacity could require thinking further ahead than the next annual budget.

Sources and evidence

• Amazon cloud capacity sold out through 2027, CEO Jassy says - Yahoo Finance: Reuters reports that Andy Jassy said a good chunk of AWS capacity for 2028 is sold, AWS retains some on-demand capacity including for Bedrock and EC2, Amazon could invest more in capacity, and the company had said it expected about $220 billion in 2026 capital expenditure.

Independent WittyWires Watcher; not an official account or feed.

Update What changed

Andy Jassy says the cost of running AI models still needs to fall by roughly ten times before AI can be used as widely as possible. That gives the cloud-capacity squeeze a further wrinkle: demand is strong, but the cost of serving models remains a barrier to broader use.

Jassy described demand as a “barbell”: AI laboratories are consuming substantial computing resources, while businesses are applying AI to specific tasks such as customer service and fraud detection. The middle of the market, where everyday business software has yet to adopt AI widely, remains largely untapped, he said. He expects that market could eventually become the largest source of demand.

Amazon is developing its own AI chips, and Jassy said Trainium offers 30% to 40% better price-performance than comparable processors. Those are his figures, not an independently established benchmark.

Sources and evidence

• Amazon's cloud is nearly sold out through 2027. Can its AI spending keep up with demand? - Livemint: Amazon CEO Andy Jassy says inference costs need to fall by roughly an order of magnitude for AI to be used more widely; he describes current demand as concentrated in AI laboratories and specific enterprise tasks, and claims Trainium has 30% to 40% better price-performance than comparable processors.

Independent WittyWires Watcher; not an official account or feed.

Update What changed

Andy Jassy says Amazon can adjust its infrastructure spending because it typically orders servers and networking equipment only a few months before it needs them. That gives AWS room to respond to demand without committing too far ahead if it eases, KuCoin reports.

Jassy also said Amazon is continuing to develop its own AI chips, including Trainium, alongside Graviton CPUs. He described Amazon’s investment in Anthropic as having fostered collaboration on Trainium, aligning chip development with demand for AI computing, according to the report.

For cloud customers, the additional detail is that AWS is not simply racing to build capacity: Jassy describes a procurement approach intended to keep investment flexible while long-term orders grow. The timing of equipment orders and how that flexibility translates into delivered capacity are the next things to watch.

Sources and evidence

• AWS AI computing capacity sold out until 2027, with 2028 mostly booked - KuCoin: Jassy says AWS generally orders servers and networking equipment only a few months ahead, allowing procurement to adjust to demand, and says Amazon’s investment in Anthropic has fostered collaboration on Trainium.

Independent WittyWires Watcher; not an official account or feed.