Amazon projects $600 billion AWS sales as Nvidia reports strong earnings

Key Takeaways

• Amazon CEO Andy Jassy predicts AI will double AWS annual sales to $600 billion by 2036, up from $128.7 billion in 2025.
• Amazon is investing heavily in capital expenditures, including $200 billion, to support anticipated AI-driven demand for AWS infrastructure.
• Oracle is accelerating data center construction for AI, leading to significant cash burn and negative free cash flow, despite forecasting $90 billion in revenue for fiscal year 2027.
• Goldman Sachs reports AI investment is shifting to data center infrastructure, with AI workloads potentially driving 30% of data center capacity growth in two years.
• Global data center power needs are estimated to increase by 175% by 2030 due to AI, making power and cooling critical infrastructure considerations.
• Venture funding is increasingly focused on industry-specific AI and robotics, moving away from general-purpose AI tools.
• AUM Ventures invested in Latent AI to expand edge AI solutions for defense and industrial sectors, emphasizing real-time, low-latency operations.
• Google-backed Gradient closed a $220 million fifth fund, specializing in seed and pre-seed AI companies, but avoids funding foundational model contenders.
• Nvidia reported strong earnings and a significant sales outlook, indicating continued growth in the AI chip market.
• Wistron Group experienced declining gross margins on AI servers despite record revenue, prompting a review of its sales model due to rising material costs.

Amazon CEO Andy Jassy predicts AI will double AWS sales to $600 billion

Amazon CEO Andy Jassy believes artificial intelligence could help Amazon Web Services (AWS) reach $600 billion in annual sales, doubling his previous estimate. He shared this projection during an internal company meeting. AWS sales were $128.7 billion in 2025, and Jassy's forecast suggests a nearly 17% annual growth rate for the next decade. He noted that significant demand signals for AI are driving this growth. Amazon is investing heavily in capital expenditures, like land, power, buildings, and chips, anticipating future AI-driven revenue.

Amazon CEO Jassy: AI to double AWS sales to $600 billion

Amazon CEO Andy Jassy stated that artificial intelligence could help Amazon Web Services (AWS) achieve $600 billion in annual sales, which is double his earlier projection. He mentioned this during an internal company meeting. Jassy had previously estimated AWS could reach $300 billion in annual revenue within ten years. He sees AI as a significant opportunity for AWS to at least double that figure. The company is making substantial investments in infrastructure to support this expected growth.

Amazon CEO Jassy expects AI to double AWS sales to $600 billion

Amazon CEO Andy Jassy predicts that artificial intelligence could double his previous sales projections for Amazon Web Services (AWS) to $600 billion by 2036. These remarks were made during a private employee meeting. Jassy, who formerly led AWS, sees AI as a major growth driver for the cloud division. This new forecast highlights the significant impact of AI on the tech industry and Amazon's strategic focus on this area. The company anticipates increased demand for cloud infrastructure and services due to AI development.

Amazon CEO Jassy: AI could double AWS sales to $600 billion by 2036

Amazon CEO Andy Jassy announced that artificial intelligence is expected to help Amazon Web Services (AWS) achieve $600 billion in annual sales, doubling his prior estimate. He shared this during an internal all-hands meeting. Jassy previously projected AWS could reach $300 billion in annual revenue in about ten years and now believes AI offers the potential to at least double that. The company is investing $200 billion in capital expenditures, primarily for AI development and infrastructure, to meet anticipated demand. Other company updates included expecting one million drone deliveries this year.

Oracle Burns Cash for AI Growth, Investors Question Profitability

Oracle is accelerating data center construction and managing costs to achieve 'hypergrowth' in AI, justifying its spending by fulfilling profitable contracted capacity. However, this rapid expansion has led to a significant cash burn, with negative free cash flow of $43.8 billion in the first three quarters of fiscal 2026. Despite this, Oracle forecasts $90 billion in revenue for fiscal year 2027. The company's stock has fallen 20% year to date, and investors remain cautious about its high leverage and the potential impact of a slowdown in AI spending.

Oracle Earnings Show AI Boom's Costs and Gains

Oracle reported strong cloud infrastructure revenue growth of 84% to $4.9 billion, exceeding analyst expectations, and forecasts $90 billion in revenue for the next fiscal year. However, the company's aggressive AI buildout resulted in a negative free cash flow of $11.48 billion, significantly worse than anticipated. Capital expenditures reached $18.6 billion in the quarter. Oracle is implementing measures like job cuts and customer payment models to manage the cash crunch. The company's ability to balance AI ambitions with its financial situation will be closely watched by investors.

Goldman Sachs: AI Investment Shifts to Data Centers

Goldman Sachs reports that AI investment is becoming more focused, with companies and investors prioritizing data center infrastructure over experimental software. The market is seeing a 'flight to quality,' favoring firms that own and operate large data centers. AI workloads are expected to drive significant growth in data center capacity, potentially accounting for 30% in the next two years. This surge in demand is also increasing global data center power needs by an estimated 175% by 2030. Infrastructure limitations, like power and cooling, are now shaping AI strategies and site selection for new data centers.

AUM Ventures Invests in Latent AI for Edge AI Growth

AUM Ventures has invested in Latent AI to expand its edge AI solutions for defense, industrial, and enterprise clients. This investment highlights the growing importance of edge AI for real-time decision-making and reduced reliance on cloud infrastructure. Latent AI's technology allows AI models to run directly where needed, enabling low-latency insights and disconnected operations. The partnership aims to establish India as a leader in next-generation defense and industrial AI solutions and drive global adoption of edge AI systems.

Howard Marks: Investors Underestimate AI's Impact

Oaktree Capital Management co-founder Howard Marks believes investors are underestimating the impact of artificial intelligence, making the world more unpredictable. He noted that new technologies often capture the imagination but their flaws are not yet apparent. Marks suggested that investors might be better off owning shares in AI-focused companies rather than lending them money. He pointed to significant job cuts at companies like Block as an example of AI's potential to disrupt employment. Marks also mentioned using AI in his own firm's work.

Investors Fund Industry-Specific AI and Robotics

Venture funding is increasingly flowing into startups focused on industry-specific AI and robotics. Investors are drawn to companies building systems for the physical world or automating specialized industry tasks, moving away from general-purpose AI tools. This trend is evident in sectors like robotics, healthcare, and logistics, where advancements in AI models are making physical automation more commercially viable. Vertical AI companies are also gaining momentum by automating industry-specific workflows and embedding models into business software.

Futures Fall as Oil Rises; RBA Hikes Rates; Nvidia AI Outlook Strong

U.S. stock futures are trending lower as geopolitical tensions and rising oil prices impact the market. The Reserve Bank of Australia unexpectedly raised its benchmark interest rate, adding to global economic concerns. Nvidia released strong earnings and provided a significant sales outlook, which could influence tech stocks. Investors are also monitoring potential disruptions to global energy supply. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite are expected to open lower, reflecting a cautious market sentiment.

Gradient Raises $220 Million for Seed AI Investments

Gradient, an AI-focused investment firm backed by Google, has closed a $220 million fifth fund. The firm specializes in seed and pre-seed AI companies, having previously invested in startups like Lambda and Oura. Co-founders Darian Shirazi and Zach Bratun-Glennon noted that AI was considered a niche area when they started in 2017, contrasting with today's widespread focus. The new fund includes outside institutional investors for the first time. Gradient is cautious about mega-seed rounds and does not fund foundational model contenders.

Wistron Shifts Sales Model Amid AI Server Margin Squeeze

Wistron Group achieved record revenue and earnings per share in 2025, driven by high demand for AI servers. However, its gross margin declined due to increased shipments of AI server racks, which raised unit prices and material costs. The company is considering a shift in its sales model to address these profitability pressures. Despite the margin challenges, the strong demand for AI servers contributed significantly to Wistron's overall financial performance.

Industrial Stocks 3M and Cameco Offer Hedge Against AI Bubble

As concerns about an AI bubble persist, industrial stocks like 3M and Cameco are suggested as hedges against tech sector volatility. 3M, a stable company, is recovering and expected to perform well in 2026, offering stability away from AI's rapid fluctuations. Cameco, a major uranium miner, is poised to benefit from the growing interest in nuclear power. These companies provide diversification for investors worried about the potential bursting of an AI-driven market bubble.

Sources

• Exclusive: Amazon CEO sees AI doubling his prior AWS sales projections to $600 billion by 2036
• Exclusive-Amazon CEO sees AI doubling prior AWS sales projections to $600 billion by 2036
• Amazon CEO sees AI doubling his prior AWS sales projections to $600 billion by 2036
• Amazon CEO Sees AI Doubling His Prior AWS Sales Projections to $600 Billion by 2036
• Oracle Is Burning Cash in the Pursuit of "Hypergrowth." Is the AI Growth Stock a Buy Anyway?
• Oracle earnings deep dive reveals good, bad, ugly of AI boom | Insights
• Goldman Sachs sees AI investment shift to data centres
• AUM Ventures invests in Latent AI to scale hardware-agnostic edge AI globally
• Oaktree’s Howard Marks Says Investors Are Underestimating AI
• Investors Bet Big on Industry-Specific AI and Robotics
• Futures slip as oil rises, RBA hikes rates and Nvidia outlines massive AI sales outlook: Dow Jones, S&P, Nasdaq, Wall Street
• The Google-backed AI investors nobody took seriously in 2017 just raised $220 million
• Wistron eyes sales model shift as AI server volume squeezes margins
• Is the Stock Market Headed for an AI-Bubble Burst? Here Are 2 Industrial Stocks That Can Offset Tech Stock Volatility.