Amazon Thinks AWS Could Become a $1 Trillion Business. Here's Why.

Amazon CEO Andy Jassy says AWS could reach $1 trillion in annual revenue within 5-10 years, a target that frames the long-term bull case for AMZN's cloud unit.

AWS currently runs at $184 billion in annualized revenue and carries a $578 billion backlog. In Q3, the segment grew 39% year over year while posting a 38.7% operating margin. Those figures show a business scaling quickly without sacrificing profitability.

Jassy points to two growth engines. First, traditional cloud migration: 85% of IT spending remains on-premises, which leaves a large pool of workloads still to move. Second, AI infrastructure demand, which he sees as an additional driver layered on top of migration.

The math is demanding. Getting from $184 billion to $1 trillion implies sustaining growth near 40% annually, and the article flags that this pace will require massive capital expenditures and will face competitive pressures. Interpretation: the $578 billion backlog offers visibility into near-term revenue, but the margin question hinges on how heavily capex weighs as AWS expands.