Amazon CEO: AWS Compute Capacity Sold Out Through 2027
Amazon CEO Andy Jassy revealed that AWS cloud compute capacity is fully booked for 2026 and nearly sold out for 2027, with some orders locked in through 2028. Driven by relentless demand from AI labs and enterprises, the company plans to maintain high capital expenditures to expand infrastructure. This signals a prolonged global imbalance in AI compute supply and demand, highlighting increasing resource scarcity among major cloud providers.
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This video podcast episode was hosted by Ben Horowitz, co-founder of Andreessen Horowitz, and Erik Torenberg, a general partner at the firm. During the show, Jassy stated that demand for compute capacity from AI labs and enterprise customers remains relentless, and Amazon has been striving to keep pace with this growth.
Earlier this year, Amazon announced its capital expenditure plan for 2026, totaling approximately $220 billion (Note: equivalent to roughly 1.47 trillion RMB at current exchange rates).
Jassy noted that since cloud compute capacity for 2026 is already fully booked, the company "could actually increase investment further; doubling down is not an inefficient use of capital."
He said, "Compute capacity for 2027 is essentially sold out. We are reserving some resources for on-demand usage, Bedrock inference services, and EC2, but most large blocks of capacity suitable for bulk procurement have already been claimed. A significant portion of capacity for 2028 has also been locked in ahead of time."
EC2 is AWS’s cloud server service used to host various applications, while Bedrock allows customers to access AI models and build generative AI applications.
Amazon is scheduled to release its third-quarter earnings report on October 29 local time.