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Amazon cloud unit's AI revenue run rate exceeds $15 billion in first quarter, CEO says
Jassy said AWS AI services are generating more than $15 billion a year as Amazon argues heavy chip and data-center spending will pay off.
- On Thursday, Amazon stock rose after CEO Andy Jassy's shareholder letter revealed the company's AWS cloud unit reached a $15 billion annual revenue run rate from AI services, the first hard numbers disclosed on top-line AI performance.
- Amazon reiterated plans to spend roughly $200 billion in capital expenditure throughout 2026 on AI infrastructure, a commitment that keeps pressure on free cash flow and has led some investors to question whether the return timeline justifies near-term spending.
- Jassy also reported that Amazon's custom chip business, including Graviton processors and Trainium AI chips, has exceeded a $20 billion annual revenue run rate, doubling from the $10 billion reported earlier this year.
- AWS could be growing "even faster," Jassy acknowledged, noting that the cloud division faces "capacity constraints that yield unserved demand," while stating Amazon is not investing "on a hunch."
- Much of the capital expenditure is expected to be monetized in 2027 and 2028, with Jassy emphasizing that Amazon is "investing to be the meaningful leader" to drive future operating income and free cash flow growth.
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12 Articles
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Amazon cloud unit’s AI revenue run rate exceeds US$15 billion in first quarter, CEO says
Amazon’s AI services at its cloud-computing unit are generating annualized revenue of more than US$15 billion, CEO Andy Jassy said, the first time the company has reported numbers on a business it has backed with billions of dollars in investment.
Channel News Asia
Amazon cloud unit's AI revenue run rate exceeds $15 billion in first quarter, CEO says
April 9 : Amazon.com said on Thursday its cloud business's AI revenue run rate was more than $15 billion in the first quarter of 2026, the company's first disclosure of direct financial returns from its artificial intelligence efforts. The numbers are also "ascending rapidly", Amazon CEO Andy Jassy said in a
Amazon (AMZN) Stock Surges 5.6% Following CEO's Bold AI and Chip Business Revelations
Key Highlights Andy Jassy refuted concerns about an AI investment bubble in his yearly shareholder communication, emphasizing that actual revenue is already being realized. AWS’s artificial intelligence services reached an annualized revenue run rate exceeding $15 billion during the first quarter of 2026. The company’s proprietary chip division — featuring Trainium and Graviton products — achieved an annualized revenue run rate surpassing $20 b…
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