Jassy says Bedrock could rival EC2 as AWS growth surges

Amazon CEO Andy Jassy told analysts that Bedrock, the AWS service that gives companies access to AI models, could one day be as large as EC2, the cloud unit's core computing business. He made the prediction on the company's third-quarter earnings call on Thursday, Oct. 29. "I think that the size of the opportunity in Bedrock is gigantic, and it could be a service as large as EC2, which is a very large service today in AWS," Jassy said, according to a call transcript.finance.yahoo.com

Jassy backed the claim with usage figures. Fortune 500 companies spent nearly seven times more on Bedrock than a year earlier, and total Bedrock token volume grew nearly 17-fold, Amazon's earnings release said. He called Bedrock the fastest-growing multibillion-dollar service in AWS history, CRN reported.crn.com+1

Betting on multiple models

Jassy said Bedrock's appeal comes from customers wanting to use several competing models without getting locked into one provider. "Most customers are going to use multiple models, and many will use multiple models in the same generative AI application," he said, per CRN. He predicted that within two to three years, six to eight models could handle at least 95% of workloads. Tens of thousands of customers now use Bedrock AgentCore, and they deployed twice as many agents in the third quarter as in the previous three quarters combined, CRN reported. Jassy also said most Bedrock workloads now run on Amazon's own Trainium chips, the transcript shows.crn.com+1

Inference costs remain a hurdle

Jassy also said costs could hold back wider enterprise adoption. "If we all want enterprises to be able to use inference the way we all believe they will, we have to keep working on taking the cost of inference down. That is a huge mission for AWS," he said, per the transcript. He named a second obstacle, a shortage of workers who know how to run AI systems and fine-tune models, CFO Dive reported. According to Jassy, inference already makes up well over half of AWS's AI revenue.cfodive.com+1

Strong cloud quarter, uneasy investors

AWS revenue rose 39% to $46 billion. That put the unit at a $184 billion annualized run rate, its fastest growth in nearly five years, Amazon said. Total revenue was $201.9 billion and earnings were $1.89 per share. Both came in below Wall Street estimates, and free cash flow over the trailing 12 months was negative $42.4 billion, CNBC reported. Shares dropped in extended trading after the report. Amazon is keeping its 2026 capital spending plan at about $220 billion and expects to spend "meaningfully more in 2027," according to CRN. Jassy said he expects AWS revenue to grow more than 40% in both 2027 and 2028.sec.gov+2