Amazon (Amazon) released its financial results for the second quarter of 2026, reporting that revenue from its AWS cloud business reached $42.2 billion, a 36.7% increase year-over-year, marking the fastest growth rate in 18 quarters. Amazon CEO Andy Jassy stated that AWS currently has nearly $500 billion in order backlog and has the potential to become a business with annual revenue of $1 trillion.

Driven by strong demand for AI infrastructure and rising memory costs, Amazon has raised its 2026 capital expenditure forecast from $200 billion to $220 billion.Jassy noted that even so, the company will struggle to meet all computing power demand in 2026 and even 2027, and expects demand in 2028 to be “absolutely staggering.”