Amazon plans heavy spending to reach trillion dollar cloud revenue target
Amazon Chief Executive Andy Jassy announced plans to increase capital expenditure to build cloud infrastructure and push Amazon Web Services toward one trillion dollars in annual revenue.
FTMQ Tech, written by our newsroom0 views
Amazon aims to make its cloud computing unit, Amazon Web Services, a one trillion dollar revenue business, TechCrunch reported on Thursday. Chief Executive Officer Andy Jassy stated during an earnings call that achieving this goal requires the company to continue increasing its capital expenditure to build out infrastructure for artificial intelligence. [1]
TechCrunch reported that Andy Jassy believes no business has ever reached one trillion dollars in annual revenue. According to FourWeekMBA, Amazon holds its capital expenditure guidance at 220 billion dollars, with Jassy projecting growth of over 40 percent for Amazon Web Services. [1][2]
Andy Jassy became the president and chief executive officer of Amazon in July 2021 when he succeeded founder Jeff Bezos. Before taking his current role, Jassy founded Amazon Web Services and served as its chief executive officer from April 2016 until July 2021. [3]
TechCrunch noted that Amazon must expand its physical infrastructure significantly before its cloud division can achieve the projected financial milestone. The increased spending will directly support the expanding requirements of artificial intelligence cloud services. [1]
In short
- Andy Jassy projected that Amazon Web Services could become a one trillion dollar revenue business.
- Amazon plans to increase capital expenditures to build infrastructure for artificial intelligence.
- FourWeekMBA reported Amazon capital expenditure guidance holds at 220 billion dollars.
- Andy Jassy has served as chief executive officer of Amazon since July 2021.
Sources
Every paragraph above points to the numbered items it rests on. Read the originals here.
- [1]AWS will be a $1T business, Jassy says. But first, it will spend big.TechCrunch, 5d ago (the report this story comes from)
- [2]Jassy Projects 40%+ AWS Growth as Capex Guide Holds at $220BFourWeekMBA, 5d ago
Background
- [3]Andy Jassy on Wikipedia
Our newsroom writes these reports with the help of software, from the 3 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.
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