Amazon Profit Jumps as AI Demand Lifts Sales
Amazon's AWS revenue rose 20% to $33 billion driven by AI and infrastructure demand, with retail delivery expanding to over 2,300 communities, company said.
- On Thursday, Amazon reported third-quarter 2025 revenue rose 13% to $180.2 billion, while AWS revenue increased 20% to $33 billion.
- Amid rising AI demand, Amazon said it accelerated capacity additions, adding more than 3.8 gigawatts and expanding same-day grocery delivery to over 2,300 communities this year.
- Results were weighed down by two charges, a $2.5 billion legal settlement with the Federal Trade Commission and $1.8 billion in severance costs, leaving operating income at $17.4 billion in Q3 2025.
- Shortly after the results landed, Amazon's share price rose 11% in after-hours trading, and the company said it is reducing its workforce with cuts targeting 350,000 office positions amid over 1.5 million employees.
- AI's resource demands — notably electricity and cooling water — raise concerns as Amazon launched a massive computing cluster with nearly 500,000 custom AI chips and tech giants invest heavily in AI computing capabilities.
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The cloud division of Amazon is targeting dozens of large and small businesses. It has recently grown as fast as it has not been in years.
The e-commerce giant Amazon recorded revenues of US$180.2 billion in the third quarter, 13% higher than those scored in the same period of 2024, with a favorable performance of its unit in the Amazon Web Service (AWS).The sales, of the company founded by Jeff Bezos, were higher than the US$177.8 billion projected by analysts according to a Bloomberg poll.The North American segment's revenues increased 11% to US$106.3 billion and the internationa…
Tech giant Amazon posted a 13 percent increase in revenue in the third quarter, reaching over $180 billion. The cloud services division was the main driver of this growth. According to CEO Andy Jassy, there was also strong demand for computing power for AI applications.
After six months of mistrust, the markets finally endorsed on Thursday Amazon's strategy and its colossal spending to keep pace with the artificial intelligence revolution, after the publication of quarterly results showing a clear growth in the revenues of remote computing (infrastructure).
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