Amazon's Jassy says AWS is largely sold out through 2027, with a $220 billion capex bill and earnings Oct. 29

Amazon Web Services is "largely sold out" through 2027, according to Reuters' account of CEO Andy Jassy's comments on Friday. Jassy spoke on a video podcast hosted by Andreessen Horowitz's Ben Horowitz and Erik Torenberg. Reuters paraphrased him rather than quoting at length, so the characterizations below are Reuters', not verbatim Jassy.

What he said, per Reuters

• AWS capacity for 2026 is fully committed.
• Most large 2027 allocations are reserved, and a significant share of 2028 is already accounted for.
• Demand from AI developers and enterprise customers is straining available computing resources.
• AWS keeps some capacity free for on-demand customers using Amazon EC2 and Amazon Bedrock.
• Amazon plans roughly $220 billion of capital spending in 2026 on data centers and related infrastructure, and Jassy suggested demand could justify it.

The number behind the number

"Sold out" describes booked capacity, not revenue already earned. Capacity that is reserved becomes sales only as Amazon builds and powers the servers, which is why the shortage and the spending are the same story. Reserved but undelivered capacity is also a promise that can be renegotiated if a customer's own funding wobbles. We covered that risk at the AI labs in our reports on OpenAI's revenue reset and the neocloud selloff.

Our chart shows Amazon at $248.00 at Friday's close, 12.7% below its August 3 high of the past year.

Who it matters to

Startups and small software firms that rent cloud capacity may face tighter availability or higher prices if big reserved contracts crowd them out. Jassy's remark about on-demand capacity suggests some remains, but Reuters gave no pricing. Chip, power and data-center suppliers read a sold-out cloud as demand for their products. Investors will look for AWS growth and the capex forecast when Amazon reports third-quarter results on October 29, the date Reuters gives.

Background on the company is in our Amazon stock explainer.

Sources: Reuters via Investing.com (Oct. 23, 2026); Yahoo Finance price history. Some data may be delayed. This is market information, not investment advice.