AI computing power demand is booming, Amazon AWS' capacity is fully booked through 2027, with most 2028 slots also already snapped up.

Beating AI Newsflash: Amazon CEO Andy Jassy stated that AWS’s core computing power demand will remain robust over the coming years, with 2026 capacity already sold out, 2027 nearly fully booked, and most 2028 capacity pre-reserved. Speaking on an Andreessen Horowitz podcast Friday, Jassy added that AWS will retain some computing resources for on-demand computing services, EC2 cloud servers, and AI model inference service Bedrock to fulfill customers’ immediate needs. For long-term order growth, Amazon maintains a relatively flexible capital expenditure strategy: the company typically procures servers and network equipment just months in advance, adjusting procurement scale based on actual demand to mitigate the risk of overcapacity if demand cools. Additionally, Amazon is advancing its in-house chip development strategy. Jassy noted that the early acquisition of Annapurna Labs is one of Amazon’s most successful buys, with the team currently developing the Trainium AI chip and Graviton CPU. Amazon’s investment in Anthropic has also driven collaboration on the Trainium chip, further aligning chip research and development with AI computing power requirements.