AWS Capacity Mostly Sold Through 2027

Amazon Web Services (AWS) has effectively sold all of its computing capacity for 2026 and 2027, while a substantial share of its 2028 supply is also reserved. Amazon CEO Andy Jassy said on the 23rd, local time, that the company is struggling to keep up with demand from AI labs and enterprise customers. He spoke on a video podcast with Andreessen Horowitz co-founder Ben Horowitz and general partner Eric Torenberg.

Jassy said most of AWS’s 2027 capacity was sold, with some held back for on-demand demand and its Bedrock and EC2 services. Nearly all large-scale supply was taken, and a substantial portion of 2028 capacity was sold as well. Bedrock helps customers build generative AI applications using multiple models, while EC2 provides cloud servers for running applications.

Amazon previously projected about $220 billion in capital spending for 2026. The article says that would be the largest outlay among major technology companies including Microsoft, Google and Meta, yet still would not meet demand. Responding to concerns about overinvestment, Jassy said data center buildings are long-term assets, while expensive AI servers and chips are purchased after demand is confirmed. He also pointed to five-year terms in most customer contracts.

Amazon continues to work with Nvidia while offering its in-house AI chip, Trainium, as an alternative. Jassy said Trainium delivers 30–40% better price-performance than existing alternatives, helping secure large-volume commitments from major labs such as Anthropic. He warned that companies must rewrite application architectures as AI agents take the lead in code changes and security patches. Amazon is also reshaping its organization and products to match the pace of agent-centered development, and Jassy said further investment would not amount to misallocated capital.

Amazon Web Services (AWS) has effectively sold all of its computing capacity for 2026 and 2027, while a substantial share of its 2028 supply is also reserved. Amazon CEO Andy Jassy said on the 23rd, local time, that the company is struggling to keep up with demand from AI labs and enterprise customers. He spoke on a video podcast with Andreessen Horowitz co-founder Ben Horowitz and general partner Eric Torenberg.

Jassy said most of AWS’s 2027 capacity was sold, with some held back for on-demand demand and its Bedrock and EC2 services. Nearly all large-scale supply was taken, and a substantial portion of 2028 capacity was sold as well. Bedrock helps customers build generative AI applications using multiple models, while EC2 provides cloud servers for running applications.

Amazon previously projected about $220 billion in capital spending for 2026. The article says that would be the largest outlay among major technology companies including Microsoft, Google and Meta, yet still would not meet demand. Responding to concerns about overinvestment, Jassy said data center buildings are long-term assets, while expensive AI servers and chips are purchased after demand is confirmed. He also pointed to five-year terms in most customer contracts.

Amazon continues to work with Nvidia while offering its in-house AI chip, Trainium, as an alternative. Jassy said Trainium delivers 30–40% better price-performance than existing alternatives, helping secure large-volume commitments from major labs such as Anthropic. He warned that companies must rewrite application architectures as AI agents take the lead in code changes and security patches. Amazon is also reshaping its organization and products to match the pace of agent-centered development, and Jassy said further investment would not amount to misallocated capital.