Amazon's AI Revenue Exceeds $15 Billion

Amazon's AI Revenue Exceeds $15 Billion

Amazon's cloud computing unit, Amazon Web Services (AWS), has reported that its artificial intelligence (AI) services are generating an annualized revenue run rate exceeding $15 billion. This disclosure, made by CEO Andy Jassy on Thursday, April 9, marks the first time the company has provided specific financial figures for its AI business, which has received billions of dollars in investment.

The $15 billion figure, based on first-quarter performance, represents approximately 10% of AWS's total $142 billion revenue run rate. This announcement follows sustained investor and analyst interest in the financial returns of Amazon's significant AI investments. The company's shares increased by 1.5% in premarket trading following the news.

Jassy also highlighted the growth of Amazon's custom chip business, which includes Graviton processors and Trainium AI chips. This segment has doubled its annualized revenue run rate to over $20 billion, up from $10 billion previously reported. Amazon anticipates that much of its projected $200 billion capital expenditure for 2026, primarily focused on AI development and infrastructure, will be monetized in 2027-2028, with substantial customer commitments already secured.