OpenAI's Amazon Web Services Commitment Seen Accelerating Growth -- Market Talk

Dow Jones03:15

1414 ET - OpenAI's commitment to an additional $100 billion in Amazon Web Services spending as part of Amazon's deal to invest about $50 billion in the AI company builds confidence in the growth outlook for AWS, according to Morgan Stanley in a note. The analysts assume OpenAI ramps its spending slowly this year before accelerating in 2027, which would ramp AWS's revenue recognition from $5 billion a quarter in 1Q 2027 to $8 billion in 4Q. As a result, they now expect 29% AWS growth this year and 32% in 2027, up from estimates of 26% and 25% growth respectively. Still, AWS' growth is contingent on the company's ability to continue bringing data-center capacity online, as the company remains capacity constrained.(elias.schisgall@wsj.com)

(END) Dow Jones Newswires

March 02, 2026 14:15 ET (19:15 GMT)

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