Amazon CEO Andy Jassy said in an Andreessen Horowitz (a16z) video podcast released around October 23, 2026 that Amazon Web Services capacity for 2026 is already sold out, 2027 is largely sold out, and a good chunk of 2028 is booked. He said Amazon still leaves room for on-demand capacity and for Bedrock and EC2, but the big reserved blocks are committed. Reuters reported the same remarks on October 23.
Key Facts
| Details | |
|---|---|
| Speaker | Andy Jassy, Amazon CEO |
| Venue | a16z podcast with Ben Horowitz and Erik Torenberg (YouTube video published ~Oct 23, 2026) |
| 2026 capacity | "obviously sold out" |
| 2027 capacity | "largely sold out" (big chunks); some held for on-demand / Bedrock / EC2 |
| 2028 capacity | "a good chunk" sold out |
| 2026 capex (company guidance cited in interview) | About $220 billion; still "leaving a meaningful amount of demand on the table" |
| Shortage outlook | Does not think supply constraints end in 2027; expects them in different components for several years |
| Earnings | Amazon Q3 results scheduled for October 29, 2026 (Reuters) |
Background
Jassy tied the squeeze to AI infrastructure demand from labs and enterprises. In the same interview he said AWS AI revenue is already over a $25 billion run rate in the first three years of the generative AI wave, and that even at $220 billion of planned 2026 capital spending Amazon could invest more and "it wouldn't be a bad use of capital."
He also said he does not expect the shortage of data center power, chips, and memory to stop in 2027. On allocating scarce memory, he described trade-offs between HBM for AI accelerators and DRAM for non-AI "core" workloads, and said Amazon will not squeeze long-time core customers to free capacity for labs that will pay more.
Separately in the interview, Jassy argued inference is still "an order of magnitude too expensive" for pervasive use in existing enterprise apps. That is a claim about remaining cost, not a statement that inference costs have already fallen to one-tenth.
What We Don't Know Yet
- Exact MW or instance volumes sold for each year, and how much capacity is reserved versus left for on-demand.
- Whether Amazon will raise the $220 billion 2026 capex figure when it reports on October 29.
- How booking for 2028 breaks down by region, chip type, or customer segment (not stated).