Investing.com -- Amazon CEO Andy Jassy told employees during an internal all-hands meeting that he expects artificial intelligence could help the company's cloud computing unit Amazon Web Services reach $600 billion in annual sales, double his previous estimate, Reuters reported on Tuesday.

Jassy said he had previously thought that AWS could reach about $300 billion in annual revenue in roughly 10 years, meaning this most recent estimate represents a double from the prior figure. He added that developments in AI have given AWS a chance to reach at least double that figure.

Amazon's net sales increased 12% to $716.9 billion in 2025. AWS segment sales increased 20% year-over-year to $128.7 billion, meaning Jassy's current estimate suggests the unit could grow roughly 5 times over the next 10 years.

Amazon has been embracing AI transformation and actively pursuing partnerships. The company recently collaborated with NVIDIA on advanced AI assistants for cars. Separately, AWS and Cerebras formed a collaboration aimed at setting a new standard for AI inference speed and performance in the cloud.

Amazon also has a multi-year strategic partnership with ChatGPT maker OpenAI, involving up to $50 billion in investment to accelerate AI innovation. The partnership includes large-scale adoption of Amazon's custom Trainium AI chips by OpenAI.

Amazon shares spiked following the report but have since pared back some gains and are currently trading roughly 1% higher.