Jassy: AWS has sold most of its 2027 compute capacity
Amazon's CEO said a substantial share of AWS's 2028 capacity is also already sold as AI demand outpaces supply.
Amazon CEO Andy Jassy said Amazon Web Services has sold most of its 2027 compute capacity, and that a substantial portion of its 2028 capacity has already been sold as well, according to aitimes.com. He made the remarks in a video podcast with Ben Horowitz and Eric Torenberg of Andreessen Horowitz published on October 23, 2026.
Jassy said Amazon is struggling to keep up with what he described as explosive demand from AI labs and enterprise customers. He said AWS is holding some capacity aside for on-demand demand and for its Bedrock generative AI service and its EC2 cloud computing platform.
On chips, Jassy said Amazon's in-house Trainium offers 30-40% better price-performance than existing alternatives, according to the article's account of his remarks. Anthropic has committed to large volumes of Trainium, while Amazon keeps its Nvidia partnership and offers Trainium as an in-house alternative.
Capital spending
Jassy suggested Amazon could invest significantly more capital without misallocating it. In background, Amazon had previously guided to roughly $220 billion in capital expenditure for 2026, the largest among big tech companies including Microsoft, Google and Meta.
Jassy also cited the structure of AWS's business, saying most customer contracts are five-year commitments, which he pointed to as supporting demand.
Quick answers
What did Andy Jassy say about AWS capacity?
He said AWS has sold most of its 2027 compute capacity and a substantial portion of its 2028 capacity, keeping some aside for on-demand demand and for Bedrock and EC2.
Where did Jassy make the remarks?
In a video podcast with Ben Horowitz and Eric Torenberg of Andreessen Horowitz, published on October 23, 2026.
What did Jassy say about Trainium?
He said Trainium offers 30-40% better price-performance than existing alternatives, according to the article's account of his remarks.