Amazon Thinks AWS Could Become a $1 Trillion Business. Here's Why.

Amazon CEO Andy Jassy believes AWS could reach $1 trillion in annual revenue within 5-10 years, driven by two major growth engines: traditional cloud migration (85% of IT spending still on-premises) and AI infrastructure demand. AWS currently generates $184 billion in annualized revenue with a $578 billion backlog. The company achieved 39% YoY growth in Q3 with 38.7% operating margins, though sustaining 40% annual growth long-term will require massive capital expenditures and face competitive pressures.