Amazon’s AI Services Generate Over $15 Billion as Cloud Business Skyrockets
Amazon Web Services (AWS) has recently announced that its artificial intelligence services are generating an annualized revenue exceeding $15 billion. This significant revelation marks a crucial milestone in the company’s AI transformation.
In his annual shareholder letter released on Thursday, April 9, CEO Andy Jassy disclosed this figure, which represents approximately 10% of AWS’s $142 billion revenue run rate. This announcement comes at a time when Amazon is defending its ambitious $200 billion capital expenditure plan for 2026, with a primary focus on AI infrastructure.
“We’re not investing approximately $200 billion in capex in 2026 on a hunch,” Jassy wrote. He emphasized that a substantial portion of this spending will be monetized in 2027-2028, with customer commitments already secured.
Moreover, Amazon’s custom chip business, which includes Graviton processors and Trainium AI chips, has doubled to exceed a $20 billion annual revenue run rate. This is a significant increase from the $10 billion reported earlier this year. The company hinted that due to the overwhelming demand, these chips might eventually be sold to third-party customers.
Following the disclosure, Amazon shares rose by 4.5%, as investors welcomed the concrete evidence that the company’s AI investments are translating into substantial revenue growth.
Source: Yahoo Finance