AWS installs an AI accelerator every 14 seconds and eyes $1 trillion annual revenue
Before long, we could be writing about a cloud company with a retail side hustle
Amazon Web Services (AWS) is on track to become a trillion-dollar business within the next five to ten years, according to Amazon CEO Andy Jassy. The AI boom is driving the company's growth, with AWS already generating $184 billion in annual revenue this financial year, up 39.3% year-over-year. Q3 revenue reached $46 billion, just shy of the projected 40% growth.
Jassy highlighted that 85% of global IT spend is still on-premises, but the shift to the cloud is inevitable over a 10- to 20-year cycle. AI accelerators are being installed at a rate of one every 14 seconds, with AWS's Bedrock AI services being the fastest-growing multi-billion dollar service in its history. Core compute and storage services are also experiencing rapid growth.
AWS's AI workloads rely on its core services, ensuring a symbiotic relationship between the two. The company anticipates $220 billion in capital expenditure in 2026, with $75.9 billion already spent in a single quarter on AWS. Jassy emphasized the transformative nature of AI, noting that while a 25-year spread of capital expenditure might be more convenient, the current trajectory is the only viable path forward.
AWS's growth is outpacing the company's retail and operations divisions, which saw a modest 6% revenue increase. Overall, Amazon's revenue for the quarter was $180.17 billion.
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