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Desk: Amazon is at a juncture where two very different stories are unfolding at the same time. On one hand, thousands of employees are leaving the company. On the other hand, the company is talking about a future where Artificial Intelligence can take the company’s cloud business to a level where only a few companies have been able to reach.

According to a Reuters report, in a recent internal meeting, Andy Jassy explained how he sees the future of Amazon Web Services. Earlier he believed that AWS could become a $300 billion annual business in the next ten years but now, with AI gaining momentum, he thinks this number could be much higher.

Jesse said, I have been thinking for the last few years that AWS, let’s call it, could be a run rate business with annual revenues of about $300 billion 10 years from now. I think AWS has a chance to at least double what’s happening in AI.

If this happens, then the annual revenue of AWS can reach approximately $600 billion i.e. approximately Rs 55,00,000 crore. To understand this, AWS will earn $128.7 billion in 2025, which is 19 percent more than last year. Reaching JC’s new forecast would mean maintaining strong growth every year for a long time.

On one hand, these big plans are being discussed, on the other hand, Amazon has recently confirmed the layoff of about 16,000 employees. This step of the company is part of its ongoing efforts to simplify how teams are organized and decisions are taken. The layoffs were to an internal plan called Project Dawn. Interestingly, the news of the cuts first came to light through a draft email, which was mistakenly shared with employees before any official announcement.

The company is placing a huge emphasis on AI, especially through AWS, where businesses come to power their data, apps and now increasingly run AI models. As more companies want to build AI tools, they need powerful cloud systems to run them. This is where AWS comes in and Amazon wants to be the first choice for this demand.