Amazon bets big on AI growth
AWS sees revenue doubling on demand
Amazon Chief Executive Andy Jassy said artificial intelligence could propel Amazon Web Services (AWS) to as much as $600 billion in annual revenue, telling staff the surge in AI demand gives the cloud unit “a chance to at least double” a prior $300 billion forecast. The comments, made at an internal all‑hands meeting and reviewed, follow AWS reporting nearly $129 billion in sales in 2025, a 19% year‑on‑year increase. Jassy’s projection implies roughly 17% average annual growth for the next decade and underpins Amazon’s planned $200 billion capital expenditure on AI infrastructure this year—spending that has unsettled investors despite his insistence the outlay is deliberate and will yield returns.
The growing AI-driven appetite for compute is boosting semiconductor makers as well. Samsung Electronics’ co‑CEO Jun Young‑hyun said the company expects a “favorable business environment” amid rising AI demand and continued memory shortages, which have tightened supply to non‑AI sectors and supported sharp memory price hikes. Strong orders for high‑bandwidth memory used in AI servers have helped Samsung’s shares hit record highs, up about 70% year‑to‑date.
Both Amazon and Samsung highlighted how generative AI, cloud scaling and smart devices are pushing requirements for specialized chips and data‑centre capacity. AWS executives reported customers are investing heavily in high‑performance computing and custom AI chips, driving service demand and long‑term data‑centre capital investment. Samsung said AI orders are accelerating the semiconductor market’s recovery with stronger pricing and improved shipments.
The combined signals from a major cloud provider and a leading chipmaker illustrate AI’s growing role as a primary revenue driver across the tech industry and as a catalyst for renewed semiconductor demand. That dynamic is intensifying competition to secure chip supply and develop next‑generation processors, prompting companies to expand in‑house capabilities and production. Analysts say sustained AI adoption is likely to keep demand for advanced semiconductors high in coming years, reinforcing the strategic importance of chip manufacturing to global technology growth.
