Jassy: AWS capacity sold out for 2026, largely for 2027

Amazon CEO Andy Jassy delivered the clearest statement yet of the compute crunch. AWS capacity is sold out for 2026, largely sold out for 2027, and a chunk of 2028 is already committed. AWS revenue rose 37% to $42.2 billion, its fastest growth in 18 quarters. Backlog reached $496 billion, and the AI business is running above $25 billion a year.

To catch up, Amazon plans about $220 billion in 2026 capital spending, aimed at demand from AI labs and enterprises. That figure roughly matches Microsoft's $220.7B plan. Meta also raised its floor this week, which makes hyperscaler capex the defining theme of earnings week.

Scarcity reinforces AWS's push toward its own silicon. Engineers on forums worry that hyperscalers will use tight supply to steer customers into long-term commitments and proprietary chips such as Trainium and Graviton. Hugging Face's new Trainium model-compatibility lookup is a small sign of that ecosystem forming.

The caveat is physical, not financial. Community commenters point out that HBM supply, power and data-center space are hard limits that budgets cannot fix before 2027. For developers, expect tighter GPU access, longer contracts, and more emphasis on efficiency tooling.