Amazon's AWS sold out for 2026, Jassy says
Amazon boss Andy Jassy said on a16z's podcast on the 23rd of October 2026 that AWS has sold its computer power for 2026 and most of 2027. Amazon plans to spend about 220 billion dollars this year, and he said it still falls short of AI demand.
Amazon's AWS: 2026 sold outAmazon has sold its cloud computer power for 2026, boss Andy Jassy said on The a16z Show podcast on the 23rd of October 2026. For 2027 and 2028 he said: "27 is largely sold out," and "a good chunk of 28 is sold out."
Amazon Web Services (AWS) rents out the computers behind many apps and AI tools. Jassy said he does not think a shortage of data centres, power and memory ends in 2027.
Below we break down what "capacity" means and how AWS books it
Capacity is the computer power AWS rents out from its data centres, buildings full of computers. Amazon pays for one about 2 years before servers go in, Jassy said.
Most deals run for about 5 years, he said. AWS always keeps some power for "on demand" users, who rent as they go, he said.
He said AWS would not "squeeze" its existing customers to sell to AI labs that pay more.
Amazon expects to spend about 220 billion dollars in 2026
Amazon plans to spend about 220 billion dollars this year on buildings and machines, Jassy said. That is about 600 million dollars a day, by our arithmetic.
Even so, AWS leaves "a meaningful amount of demand" unmet, he said.
Amazon's own numbers: AWS sold 42.2 billion dollars in 3 months
AWS sales grew 37 percent to 42.2 billion dollars from April to June 2026, Amazon said on the 30th of July. AWS's AI business and Amazon's chip business each passed 25 billion dollars a year, Amazon said.
Jassy: AI is still about 10 times too expensive
Running AI has got cheaper, but it is still "an order of magnitude too expensive" to be used everywhere, Jassy said. An order of magnitude means about 10 times.
Amazon's own chips, such as Trainium, are "a big piece" of cutting that cost, he said.
What is confirmed and what is not
Reuters' headline on the 23rd said AWS is "sold out through 2027"; Jassy said "largely".
Amazon has given no booking figures, 24/7 Wall St wrote on the 24th. Its next results come on the 29th of October, Reuters wrote.
Key facts
AWS has sold its power for 2026, Jassy said on the 23rd of October 2026.
2027 is "largely sold out", he said.
Amazon expects to spend about 220 billion dollars in 2026.
AWS sales grew 37 percent from April to June 2026.