AWS On Track to Hit $1 Trillion in Revenue by 2036: Jassy

Amazon Web Services (AWS) has been growing rapidly under the leadership of CEO Andy Jassy. The division's annual recurring revenue (ARR) reached $169 billion in the last quarter, with sales rising 37% year-over-year.

Jassy believes that AWS can eventually surpass $1 trillion in annual revenue, which is a remarkable feat considering no company has ever achieved this milestone.

The growth of AI spending has been a significant contributor to AWS' success. The division has partnered with companies like Anthropic, which plans to spend tens of billions on cloud computing in the coming years.

Assuming AWS maintains an average revenue growth rate of 20% over the next decade, its ARR could reach $1 trillion by 2036. This would translate to operating earnings between $300 billion and $400 billion, depending on profit margins.