Jassy: AWS 2027 Capacity Largely Sold Out

Amazon CEO Andy Jassy said Amazon Web Services has already sold most of its computing capacity for 2027 and "a good chunk" of 2028, as demand for AI infrastructure keeps running ahead of supply. He made the remarks on the a16z Show, a video podcast from venture firm Andreessen Horowitz, in comments first reported by Reuters on Oct. 23.

Key takeaways

• Jassy said "2027 is largely sold out" and "a good chunk of 2028 is sold out," according to Reuters.
• Amazon plans about $220 billion in capital spending in 2026 and still expects to fall short of demand.
• Amazon reports third-quarter results on Oct. 29, the first chance for investors to see updated capacity and spending figures.

What Jassy said about AWS capacity

Jassy appeared in an episode titled "Amazon CEO Andy Jassy on the $220 Billion AI Buildout," with Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg. The episode's description says Jassy believes the buildout could help make AWS a $1 trillion annual run-rate business.

With 2026 capacity already spoken for, Jassy said Amazon "could invest a lot more and it wouldn't be a bad use of capital," Reuters reported. He added that AWS still holds back some capacity for on-demand customers, its EC2 compute service and its Bedrock AI model service.

Asked whether AI labs could crowd out longtime cloud customers, Jassy said, "We're not going to squeeze our customers," according to WebProNews. He also called inference "an order of magnitude too expensive" for enterprises to use everywhere.

The numbers behind the AWS shortage

The podcast comments echo what Amazon told investors in July. On its second-quarter call, Jassy said that even with the higher spending plan, "we will still not have enough capacity to meet all of the demand we have in 2026," Cloud Computing News reported. Amazon raised its 2026 capital spending forecast from about $200 billion to $220 billion at the time.

Source: Amazon second-quarter release (July 30, 2026). *Backlog as reported by Cloud Computing News. Jassy called the 36.7% growth rate AWS's fastest in 18 quarters.

Context: why "sold out" matters

Capacity reserved years ahead means AI labs and large enterprises have locked in compute through long-term commitments. That leaves smaller buyers relying on the share AWS keeps for on-demand use. Amazon has not said how much capacity that is, which customers hold the reservations or how prices could change.

The wording also matters. "Largely" sold out is not fully sold out, and every report so far traces back to the same podcast appearance. For more on how AWS is courting AI developers, see our report on the open-source Strands harness.

What's next

Amazon will hold its third-quarter earnings call on Oct. 29 at 2 p.m. Pacific time. In July, the company guided third-quarter net sales of $197 billion to $202 billion. Investors will be watching for an updated capital spending plan, the AWS backlog and any early outlook for 2027 spending.

FAQ

Is AWS refusing new customers?
No. Jassy said AWS keeps some capacity for on-demand use, EC2 and Bedrock. "Largely sold out" refers to capacity already reserved under customer commitments.

How much is Amazon spending?
Amazon expects about $220 billion in capital expenditure in 2026, up from an earlier forecast of about $200 billion.

When will Amazon give new figures?
At its third-quarter results call on Oct. 29, 2026.

References

• The a16z Show — Andreessen Horowitz (episode: "Amazon CEO Andy Jassy on the $220 Billion AI Buildout")
• Amazon.com Announces Second Quarter Results — Amazon (July 30, 2026)
• Amazon will share its Q3 2026 earnings on October 29 — Amazon
• Amazon cloud capacity sold out through 2027, CEO Jassy says — Reuters via Yahoo Finance (Oct. 23, 2026)
• AWS cloud growth accelerates as AI demand strains capacity — Cloud Computing News (July 31, 2026)
• AWS Has Already Sold a Good Chunk of Its 2028 Capacity — WebProNews (Oct. 23, 2026)