AI computing power demand is red-hot, with Amazon AWS capacity sold out through 2027 and most of 2028 also snapped up.

Beating AI News Flash: Amazon CEO Andy Jassy stated that AWS continues to see robust demand for core computing capacity for years to come, with 2026 capacity already sold out, 2027 also essentially sold out, and most of 2028 capacity likewise booked in advance.

Speaking on an Andreessen Horowitz podcast released Friday, Jassy said AWS will still reserve some computing capacity for on-demand computing services, EC2 cloud servers, and AI model inference service Bedrock to meet customers' immediate needs.

Facing growth in long-term orders, Amazon remains committed to a relatively flexible capital expenditure strategy. Jassy said the company typically only needs to procure servers and networking equipment a few months in advance, allowing it to adjust procurement scale based on actual demand and reduce the risk of overcapacity if demand slows.

Additionally, Amazon continues to advance its custom chip strategy. Jassy said the early acquisition of Annapurna Labs was one of Amazon's most successful acquisitions, and the team is now responsible for developing AI chip Trainium and Graviton CPU. Amazon's investment in Anthropic has also driven collaboration between the two parties on Trainium chips, further promoting synergy between chip development and AI computing demand.