Breaking AI News: Amazon CEO Andy Jassy stated that demand for AWS’s core computing power over the next several years remains robust, with 2026 capacity fully sold out, 2027 capacity nearly sold out, and most of 2028’s capacity already pre-booked. In a recent Andreessen Horowitz podcast episode released on Friday, Jassy said AWS will continue to reserve some computing capacity for on-demand services, EC2 cloud servers, and the AI model inference service Bedrock to meet customers’ immediate needs. In response to growing long-term orders, Amazon is maintaining a relatively flexible capital expenditure strategy. Jassy noted that the company typically only needs to order servers and networking equipment a few months in advance, allowing it to adjust procurement volumes based on actual demand and reduce the risk of overcapacity if demand slows. Additionally, Amazon is continuing to advance its custom chip strategy. Jassy said that the acquisition of Annapurna Labs years ago was one of Amazon’s most successful acquisitions; the team now develops the AI chips Trainium and Graviton CPUs. Amazon’s investment in Anthropic has also fostered collaboration on the Trainium chip, further aligning chip development with AI computing demand.
AWS AI computing capacity sold out until 2027, with 2028 mostly booked
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Summary
Amazon Web Services (AWS) AI computing capacity is fully booked through 2026, nearly sold out for 2027, and most of 2028 is already reserved, according to CEO Andy Jassy. He noted on the Andreessen Horowitz podcast that AWS will retain some capacity for EC2 servers, on-demand computing, and AI inference via Bedrock. The company follows a flexible capital spending model, purchasing servers and network equipment just a few months in advance. Amazon is also advancing its in-house chip strategy, with Annapurna Labs developing AI chips Trainium and Graviton CPUs. The company’s investment in Anthropic supports the development of Trainium. Network upgrade efforts continue as AWS scales its AI and crypto infrastructure.
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