1 Jaw-Dropping Metric That Shows Why Amazon Is a Force to Be Reckoned With in the AI Arms Race

Amazon, an online retail giant, has emerged as a formidable player in the artificial intelligence (AI) landscape. Often overlooked as a key player in AI development, the company's cloud computing arm, Amazon Web Services (AWS), has delivered an impressive year-over-year growth rate of 37%. This growth rate has been steadily increasing, and could continue to do so for several years, thanks to Amazon's significant investments in AI computing infrastructure.

In fact, AWS currently holds a 28% market share and contributes 60% of Amazon's operating profits, making it the leading competitor in the cloud computing sector. With AWS continuously accelerating its growth rate, from 20% in Q3 2025 to 28% in Q4 2025 and 37% in Q2 2026, it's clear that Amazon is well-positioned to capitalise on the AI arms race.

Amazon's heavy investment in computing infrastructure, projected to reach $220 billion this year, will ultimately lead to increased capacity and revenue. As CEO Andy Jassy has noted, Amazon is experiencing demand for capacity that won't be available until 2028, providing a clear indication of future growth potential. While not currently listed in The Motley Fool's top 10 stocks, Amazon's strong growth rate and AI investments make it an attractive investment opportunity for long-term shareholders.