Amazon cloud capacity largely sold out through 2027, CEO Jassy says (Oct 23)

(Corrects headline of ‌October 23 ​story ​to say Amazon is largely sold out of cloud capacity through 2027, not fully ‌sold out)

Oct 23 (Reuters) - Amazon CEO Andy Jassy said on ⁠Friday that Amazon Web Services' cloud computing capacity is ‌largely sold out through 2027, ‌with significant commitments extending into 2028, on growing demand for AI infrastructure.

In a video podcast with ​Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg, Jassy said Amazon is struggling ⁠to keep pace with the insatiable demand from AI labs and enterprises.

• ​Earlier this year, Amazon had said it would spend about $220 billion in capital expenditure ​for 2026

• Jassy said the ‌company "could invest a lot more and it wouldn't be a bad use of ⁠capital," considering cloud-computing capacity for 2026 is already sold out

• "2027 is largely sold out. We always leave a ⁠certain amount for on demand and our inference service bedrock, or ​EC2, but largely sold out all the big chunks. A good chunk of 2028 is sold out," he said

• ‌EC2 is an AWS service that provides cloud servers for running applications, while ‌Bedrock gives customers access to AI models to build ⁠generative AI applications

• Amazon ‌is scheduled to ​report third-quarter results on October 29

(Reporting by Jaspreet Singh in Bengaluru; Editing by Diti ‌Pujara)

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