Amazon Web Services (AWS), the world’s largest cloud provider, is nearly fully booked for next year, according to CEO Andy Jassy. He made this claim on the a16z podcast, stating that the provider’s capacity is mostly sold out. – Sebastian Moss. “Despite investing $220 billion this year, we are still losing out on a significant amount of demand,” he mentioned. “Of course, currently,’220 is completely sold out.” A specific quantity is consistently reserved for On Demand, while our inference services Bedrock or EC2 are utilized; however, there is a significant shortage of’27.
A significant portion of ’28 has been sold out.” He stated that the firm is likely adding more capacity [live] than any other company as they are highly committed to maintaining their position as a major leader in the infrastructure and AI sector, which they have been. “We’re investing $220 billion this year, and we could allocate even more, which would be advantageous in both the short and long term. Despite this, I believe there will still be unmet demand.” A tremendous demand exists at the moment.
Jassy mentioned that the demand for both AI and non-AI cloud services is increasing rapidly. However, the company has to make difficult choices regarding which sector to prioritize. This decision-making process is hindering its potential for rapid expansion.
Several supply constraints, such as memory, are also obstructing its growth. “I wish I could assure you that I believe the supply limitations will only be a problem in 2027,” Jassy stated.
